| Re: I Have A Question
Pretty simple you have not paid them, taxes and possibly insurance, in the past so they want to assure themselves that from here on out the bills are paid.
Now the reality of the situation is that if these bills, taxes, insurance, etc... are not paid by the borrower they have two choices, pay them for you and add them to the payment thereafter, or they can accelerate the entire mortgage to be due and payable immediately along with the taxes and any insurance paid on your behalf.
That clause is in your Deed of Trust as it is in everyones' Deed of Trust, you promise to keep the property insured and free of liens, and taxes are liens. They can and have paid them on your behalf this is perfectly legal. Now they are doing the kindest thing that they can (which 48 months is very kind by the way to pay back the 2.5 years taxes owing), they are giving you a chance to pay them with your payment. The unkind thing, which they can legally do, would be to immediately accelerate the loan and demand all amounts the principal balance, back taxes and any insurance that they paid for you immediately due and payable.
Real simple, you bought the house, got the loan and promised to pay these bills when they were due to protect your interest in the property and the lender's interest in the property. They now have to collect what they have paid that you did not pay. They are doing nothing outside of the realm of their rights.....the situation could be a lot worse if they wanted all of their money now.
So your choices are pay them in the payment or have them accelerate the total amount due if you do not pay them.... |