Property Taxes and Deficiency Judgments (HSBC)

[HakunaMatata]

I intend to meet with another consult attorney in the near future. Thankfully, this one comes highly recommended by a friend who practices law. In the meantime, I have numerous questions! I'll limit them to a few (I'll give all of you a break since it's the weekend!).

Although struggling, I have made the decision to proceed with foreclosure on "The Money Pit" and keep bankruptcy in the wings. I didn't make a July mortgage payment and I don't intend to make any future payments. I don't have an escrow account with my mortgage lender (HSBC). My property taxes can be paid directly to the city in monthly installments. Today commenced the Summer Tax payments. I didn't submit funds because I don't intend to keep the house. Did I make the right decision??!! I intend to stay current with home owner's insurance as I don't want to risk liability or disaster. (I've prayed a tree will fall on my house for the past five years. Mother Nature must not have the best hearing as a giant branch decided to fall on my car instead!)

I'm growing increasingly concerned with the possibility of a deficiency judgment. I discovered this today... I imagine my deficiency will be between $50-70k. My goal was to pay off credit cards as I remained in my house throughout the foreclosure. I'm sure such a deficiency will throw me into bankruptcy. Has anyone here been had a deficiency judgment? Anyone with HSBC experience?

Thanks!

[AngelinaCatHub]

I cannot answer your question without knowing more, but from what you state, you will abandon your home. With what you said, I would advise paying the taxes, insurance for sure, kill off the CC's and save for your lawyer. You are bk meat as when you lose your house, your credit is done anyway. 'Hub

[dscurlock]

I intend to meet with another consult attorney in the near future. Thankfully, this one comes highly recommended by a friend who practices law. In the meantime, I have numerous questions! I'll limit them to a few (I'll give all of you a break since it's the weekend!).

Although struggling, I have made the decision to proceed with foreclosure on "The Money Pit" and keep bankruptcy in the wings. I didn't make a July mortgage payment and I don't intend to make any future payments. I don't have an escrow account with my mortgage lender (HSBC). My property taxes can be paid directly to the city in monthly installments. Today commenced the Summer Tax payments. I didn't submit funds because I don't intend to keep the house. Did I make the right decision??!! I intend to stay current with home owner's insurance as I don't want to risk liability or disaster. (I've prayed a tree will fall on my house for the past five years. Mother Nature must not have the best hearing as a giant branch decided to fall on my car instead!)

I'm growing increasingly concerned with the possibility of a deficiency judgment. I discovered this today... I imagine my deficiency will be between $50-70k. My goal was to pay off credit cards as I remained in my house throughout the foreclosure. I'm sure such a deficiency will throw me into bankruptcy. Has anyone here been had a deficiency judgment? Anyone with HSBC experience?

Thanks!

Even if you failed to pay your insurance/taxes, then the mortg company would do so for you by placing them into escrow, they would be protecting their interest (in case a tree fell on the home, or the state files a tax lien againt the property for taxes not paid)

[HakunaMatata]

Hub-

BK meat, eh? Why do I not get the feeling you're referring to Burger King?!

My intentions are to follow the foreclosure path. I was on a 5 year ARM and my payment actually just REDUCED by $100/month (notification today)! It will re-adjust in a year and I have no idea what direction it will go (most likely, to the heavens). My mortgage payment is manageable with clever financing; although, I cannot afford the costly repairs my house needs. Right now, a plumber is part of my monthly budget. Talk about throwing money down the drain!

Okay, so I should have paid my property taxes today? Should I scramble to City Hall on Monday to submit a payment? I was under the impression that unpaid taxes would place a lien on the house. If I'm not going to be the owner in the future, how will this affect me?

Regarding the "BK Meat"...do you recommend I take my mortgage money and apply it to credit cards? I may be able to come close to a zero balance if I remain in my house for the estimated ten months (Michigan). If I pay all of my creditors off and I'm faced with a deficiency judgment...then I file for bk?

[dscurlock]

Hub-

BK meat, eh? Why do I not get the feeling you're referring to Burger King?!

My intentions are to follow the foreclosure path. I was on a 5 year ARM and my payment actually just REDUCED by $100/month (notification today)! It will re-adjust in a year and I have no idea what direction it will go (most likely, to the heavens). My mortgage payment is manageable with clever financing; although, I cannot afford the costly repairs my house needs. Right now, a plumber is part of my monthly budget. Talk about throwing money down the drain!

Okay, so I should have paid my property taxes today? Should I scramble to City Hall on Monday to submit a payment? I was under the impression that unpaid taxes would place a lien on the house. If I'm not going to be the owner in the future, how will this affect me?

Regarding the "BK Meat"...do you recommend I take my mortgage money and apply it to credit cards? I may be able to come close to a zero balance if I remain in my house for the estimated ten months (Michigan). If I pay all of my creditors off and I'm faced with a deficiency judgment...then I file for bk?

I will tell you this..my tax bill for last year was $4k ... when the state saw that I was late in paying the taxes, they are required to contact your morg company and let them know...so in order to avoid a tax lien my morg company paid the tax man by opening up an escrow, then I would make payments toward my escrow along with my house payment...personally, if you do not plan on keeping the house, and you plan on filing BK, let the morg company pick up the taxes, they will as they have an interest in the property...it will not look bad if they pick up the taxes as they will just escrow the taxes...its when you do not pay, and file BK is when it does not look good

how much are the taxes?

it depends on what is urgent to you, not paying your morgt, or paying off credit cards..If you think you are
going to file BK in the future, I would not worry about credit cards, I would try to stay in the home
as long as possible maybe by sending them payments here and there until they get tired of it...I do not
think I would want to waste it on paying credit cards if I knew I was going to file...I would try to stay
in the home as long as possible, unless I just did not want to be there anymore...

[HakunaMatata]

DS-

My Summer Taxes are only $1910 (which is shocking to me considering my city neglected to file my Homestead paperwork eight years ago resulting in overpayment of nearly $8000 by me! Oh, the joys of home ownership and unanswered questions!). I can pay my property taxes in monthly installments of $240. As of 4:30pm today, I'm late. I'm not sure if I will be subjected to a late fee and can continue with monthly installments or if, due to being late, I will be forced to pay the entire portion (which I don't presently have).

I'm sinking in this house; although, I'm beginning to wonder if I'm making the correct decision. I'm feeling so overwhelmed and stressed! Do I buck up and pay the mortgage and let my credit cards climb? Do I give up the house and try to pull myself out of debt? Do I give up the house, eliminate credit card debt only to find myself faced with an enormous deficiency judgment? Do I move out of the country and pretend living in Michigan was just a bad dream??!!! Ugh. So confused.