Most lenders require you to escrow your property tax: school
tax, county tax, local tax. This is to ensure that your taxes
will be paid and the lender won't lose their collateral to a tax
auction such as a sheriff sale.
At closing most lenders will
require you to pay the seller back money that he or she has
already paid for the year. The lender may also require 2 months
of estimated taxes (2/12) at settlement and will escrow 1/12
every month of your estimated annual tax. These funds are
usually collected monthly as part of the regular payment and
held in escrow until the taxes are due.