Question: Our bank doesn't escrow for taxes. We just learned that a customer has borrowed from a different company to pay his delinquent taxes. Can we get a payoff quote and eliminate this super-priority lien for the tax funding?
Answer: Yes. GLBA privacy rules permit getting a payoff. These is made clear in a letter that IBAT received from OCC attorney, Liz Corey: http://www.ibat.org/ch_comment_letters_2001_01_05_funds.asp The procedures for payoff are spelled out in section 32.06 of the Tax Code.
