should i pay my property taxes and home ins. if i quit paying my mortgage?

[rwforrester]

My spouse and i are getting a divorce and they moved out a yr ago. I have been making my mortgage payments on time but cannot afford it anymore since I have used just about everything in my savings to make my payments on time. I have tried to get a loan mod thru BoA because i want to keep the house but of course they will not work with me. Theres nothing more that I can do besides not paying my mortgage. What happens to my property taxes and home owners ins. if I do not pay anymore, and what are the consequences? Any one know how long it would take before a forclosure happens or how long it takes for a short sale? I dont have any where to move or the money to pay for first and last or security on an apartment so im hoping it takes a while before anything happens so i can save up some money to move.... Thank you

[Evan Bedard]

I have tried to get a loan mod thru BoA because i want to keep the house but of course they will not work with me. Theres nothing more that I can do besides not paying my mortgage. What happens to my property taxes and home owners ins. if I do not pay anymore, and what are the consequences? Any one know how long it would take before a forclosure happens or how long it takes for a short sale?

Welcome and thanks for joining the forum.

If you are not paying taxes or insurance the bank will step in and begin to pay them for you and add escrow to your account. Most people who are not paying also choose not to make these payments as they will be taken care of and once a modification is approved taxes and ins will be included in your monthly payment. Since you are just stopping payments it can be a very long time before a foreclosure date is scheduled. A short sale is never guaranteed (especially when a 2nd mortgage is involved) and the process can easily take 3-6+ months before the servicer makes a decision. What state are you located in?

[JustSharon]

rwforrester:

Evan is right that bank will pay taxes and insurance. However, as I understand it, the bank will put its own insurance in place. Their insurance covers the structure, but not any of your contents or your liability (should someone get hurt on your property for example). You may want to continue to pay insurance, or discuss with your insurance agent whether there is some other policy (renters' insurance?) that might cover your possessions.

Don't pay the property taxes. If you have HOA fees, do pay those.