Who needs to pay Property taxes and homeowner's insurance?

This is a good question:  Do you, or your bank, need to escrow for annual property taxes and homeowners insurance?

And what happens if these bills don't get paid?  Can you lose your home through a property tax sale or fire/storm damage?  And what your lender loses (the amount of loan balance) is not covered by other types of insurance such as title or mortgage insurance?

Source: http://www.washingtonpost.com/realestate/do-you-have-to-escrow-for-taxes/2011/08/08/gIQAGntyfJ_story.html

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