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    #1

    Property Tax Escrow

    My husband and I will most likely foreclose on our home in the near future. Our BK was discharged on 2/14/06 and we kept our mortgage payments current. Our property taxes are escrowed in our mortgage payment. Are we still responsible during foreclosure for these property taxes? What happens if they are not paid? I believe the due date for our property tax is the spring sometime, but they may have already been paid for this year; I guess I will have to check on this and see. Should we wait to even considering letting the house go until we know for certain that these taxes are paid. We're not positive we will have to let it go. Is it different for property versus school taxes? I'm a little confused as to what happens with foreclosure and the tax situation. Obviously, we no longer have the "automatic stay". How will this impact foreclosure?

    Thanks everyone!

    Concerned
    Last edited by concerned; 03-02-2006, 03:50 PM.
    Tags: None
    #2
    We are separating!

    We had a shaky marriage before the BK and now we basically know it's over. It's been a tough year, but I know it's the right thing to do. Neither of us can afford the home (mortgage & home equity together are $2100/month) by ourself.

    Comment

      #3
      Did you reaffirm your loans on the house during your bankruptcy? If not you can just walk away and owe nothing more. The bank will take the house as it has been included in the bankruptcy. If however you did reaffirm the loans, you will be responsible for any deficit after the house is sold by the bank.


      -Viper
      State: New York
      Filed: 10/7/2005 :(
      341: 12/9/2005 :clapping:
      Last day for Objections: 2/7/2006 :yahoo:
      Discharge & Closed: 2/17/2006 :D :D :D

      Comment

        #4
        Originally posted by aa06a47
        Property taxes generally come due at the end of the year. You will be responsible for the part of the year taxes that you physically owned the home. If the bank takes it over on (for example) 7/1/06, you will owe 1/2 of the taxes for the year. The bank will owe the rest.
        That's the way it's done in Missouri.

        We have friends in Michigan who pay their taxes twice a year, Spring and Fall.

        This thread made me wonder what will happen to our escrow when the Lender Forecloses. We have about $1000 in escrow.
        Filed Ch 7 - 09/06
        Discharged - 12/2006
        Officially Declared No Asset - 03/2007
        Closed - 04/2007

        I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

        Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

        Comment

          #5
          This thread made me wonder what will happen to our escrow when the Lender Forecloses. We have about $1000 in escrow.
          We have just over $1,000 in escrow too. I never even thought about that until now Anyone have any thoughts on that one?

          I believe in NY they pay taxes in the spring and fall too, but I thought our fall taxes were just the school tax.

          Viper--No, we did not reaffirm. We just kept our payments current so that we could walk away if we had to. Now that we realize we will have to foreclose, we have a whole new list of questions we need answered, including the tax issue. We went ahead and paid for the month of March simply because we haven't even contacted our attorney yet and we don't know how much time we will have before we will have to be out. We definitely don't want to have to move during the winter.
          Last edited by concerned; 03-02-2006, 03:52 PM.

          Comment

            #6
            Originally posted by SinkingFast
            This thread made me wonder what will happen to our escrow when the Lender Forecloses. We have about $1000 in escrow.
            Got me wondering too. Damn, just when I thought of every possible question to ask, this comes up. On the other hand, we talked with our insurance agent, who by the way, handles ALL of our insurance needs said our homeowners insurances premiums have already been paid for this year when we signed for our renters insurance. I'm hoping the lender has done the same with property taxes. Anyone know of a way to find this out? DO you call the county treasurer's office?
            Bankruptcy History:
            Chapter 7 filed - 10/12/2005 - Asset
            Discharged - 02/16/2006
            Case Closed - 11/08/2007

            A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

            All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

            Comment

              #7
              I researched Foreclosure on the Net. When I did, I came across one website that had a chart of all the states, and how long it took. New York is one of the slowest states when it comes to foreclosure if I remember correctly.

              Our friends in Michigan,......... I remember her saying their tax payment one time of the year was more than the other one. One of the tax payments she really dreaded as it was a big amount. The other was relatively small in comparison.

              Our taxes were paid in December for 2005. Our homeowners is still in effect until this coming July. So we are covered for 05 on taxes, and the Lender will foreclose before the Insurance comes due again.

              My only thought was about the money in the escrow. There's about $1K there that accumulated out of payments, and hadn't been spent for taxes or insurance. Wonder who will get that money?? Wonder if the Lender will have to send it back to us, or if the Lender get's to keep it against their "losses" or for taxes up until the Foreclosure is decided.
              Filed Ch 7 - 09/06
              Discharged - 12/2006
              Officially Declared No Asset - 03/2007
              Closed - 04/2007

              I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

              Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

              Comment

                #8
                My only thought was about the money in the escrow. There's about $1K there that accumulated out of payments, and hadn't been spent for taxes or insurance. Wonder who will get that money?? Wonder if the Lender will have to send it back to us, or if the Lender get's to keep it against their "losses" or for taxes up until the Foreclosure is decided.
                You read my mind! My husband and I are wondering the same thing. I also forgot all about the homeowners--thanks everyone for reminding us. I guess I will need to check on that too.

                New York is one of the slowest states when it comes to foreclosure if I remember correctly.

                YIPEEE!!

                Comment

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