Foreclosure and tax question

[subking]

Were in Macomb County Michigan and haven't paid property taxes for 2011 and 2012 because we know were getting foreclosed on at some time, we figured why throw our funds away on property taxes when BOA won't give us a mod, we have always kept the home insurance paid as we are in the home so theres no issuse there.

Looking at our local city tax site we discovered 2012 taxes have been paid, we think by BOA or maybe the investor who owns the note paid it but either way it was paid, however 2011 taxes remain unpaid and its now over two years so maybe they made a mistake by not paying that year or did so on purpose. The city tax office has turned the unpaid taxes over to the county. The county says they start tax foreclosure after two years, were thinking BOA will probably pay the taxes once they are notified but were not sure. We also are unsure of the process of tax forclosure if it comes to that.

We've been notified by BOA s attys. that they cannot foreclose by advertisement as usually allowed in this state (which is what they intially started to do until we went to a housing counselor), but may proceed by Judical foreclosure which means they will have to file a suit to forclose on the home.

Any advice or opinions are welcomed.

[LadyInTheRed]

I suspect Bank of America will either file a suit to foreclose before the county forecloses or pay the tax. If the county does foreclose first, you could pay the tax after you get the notice if it is worth it to pay the tax to get more time in the home. I don't know the procedure. But, I'd assume the county would send a notice of foreclorue with a deadline to pay and prevent foreclosure. If you decide to pay, I'd wait until the very last minute to make sure BoA doesn't pay.

[subking]

Ok, all curent and prior taxes are paid in full, my mistake, 2011 is paid so this is no longer a concern.

We have just been notified by BOA that Capital Resurgent Services will be our new servicer. This happened before and then a few weeks later we got notice saying the transfer wasn't taking place. Now we get a notice that it is. Whats going with this?? I don't understand.

[justbroke]

No one understands! However, many banks will transfer (sell) the servicing of a mortgage, that is in default, from their normal servicing division (such as BAC Home Loan Services) to a different servicing company that tends to deal with mortgages in default and/or foreclosures.

So long as they are not actually foreclosure and served you with a foreclosure lawsuit, there's nothing to worry about or do. The servicer could change throughout the life on the loan.

[subking]

Everything I've read about this company isn't good, it appears their specaility is bad debt. No suit filed.

[justbroke]

Everything I've read about this company isn't good, it appears their specaility is bad debt. No suit filed.

Why would you even be worried about this company? I'm assuming that you did not reaffirm your mortgage in your 2009 Bankruptcy. If that's the case, there is nothing this servicing company can do, other than foreclose through an in-rem right to foreclose. They can not come after you "personally" (in-personam).

This servicer will make money and be reimbursed for all expenses related to the foreclosure. They will make a profit. This is their business.