Property Taxes....

miked2023

LoanSafe Member
Mar 15, 2009
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I just missed my second payment (CW) and plan on riding this out at least the rest of the year (Short Sale, Forclose, Deed, Principal Reduction (I'm dreaming) - it's all on the table right now)

But what happens when I don't pay my 4K prop tax bill in November? Will the town/state come after me? Should I find the money to pay this even though I won't be paying the mortgage?

Thanks.
 

Moe Bedard

Call 1-800-779-4547
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Loan Safe Mortgage
Aug 10, 2007
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Southern California
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The worst they can do is foreclose and they just are not doing that right now. I would save that money if I were you.
 

DodgerFan

LoanSafe Member
Dec 8, 2008
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The worst they can do is foreclose and they just are not doing that right now. I would save that money if I were you.
Our mod attempt with CW is going on 7 months now. We are working with NACA, so it is a time-consuming effort. We have not paid our property taxes for 2008-2009 (San Diego County), and will begin compounding late charges + interest each month starting July 1, 2009.

While we are still waiting for a resolution via NACA and CW, should I inquire about the delinquent property taxes now too? Will CW pay them now, even if we are so far behind on the mortgage? We are 7 months behind with CW, so how is this handled now? Going forward, if we do get the mod, I would like to have an escrow acct setup to avoid this in the future. I'd like to avoid the extra penalties if possible on the taxes, if and when a mod happens.

Thanks!
 

faith

LoanSafe Member
Feb 1, 2008
973
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California
Our mod attempt with CW is going on 7 months now. We are working with NACA, so it is a time-consuming effort. We have not paid our property taxes for 2008-2009 (San Diego County), and will begin compounding late charges + interest each month starting July 1, 2009.

Dodgerton,

If you don't pay your tax bill, a penalty of 10% will be charged on the date of the delinquency. Additional interest will be charged if the tax remains unpaid after the penalty. Upon delinquency the following collection methods may be used to collect the tax:

Liens
Summary Judgments
Legal Actions
Seizure and Sale of Personal Property

If you don't pay your taxes, SD County will sell your house five years after the first year of nonpayment, your property becomes subject to sale. Don't panic! Prior to the end of the fifth year of default, they have options available for you to bring your taxes current.

If a homeowner has an impound account for his real estate taxes with a mortgage company, that mortgage company should receive the tax statement and pay your property taxes. Lenders pay your property taxes to avoid the County sell your home.



Source: SD County Property Taxes.
 

DodgerFan

LoanSafe Member
Dec 8, 2008
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Thanks Faith for the info. I suppose I should have done some research myself on the County's website. :)

That said, I have already incurred the 10% penalty on the taxes. Starting next month, are the additional interest charges. Does anyone have experience with CW paying the delinquent or back taxes while going through the mod? Should I call CW's tax dept, and ask? If this all works out in the end, I'd rather not be liable for ridiculous interest and penalties if possible. It doesn't make sense for me to make any tax payments now, since I'm not sure if we'll be able to keep the house in the end.

Thanks again for any help!
 

mel239

LoanSafe Member
Jul 14, 2009
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Havent paid taxes last year-3600.00-dont intend to need my 401 k in case I need money on the table if this ever gets doneI will pay them with my tax refund next year--Its a shame when people have to close out there retirement fund.At this rate we will have a lot of oldsters on the welfare rolls collecting food stamps and living in the dark when they cant pay there electric bill.I already turn all my breakers off every morning and we go outside and read,play and eat sandwiches
 

faith

LoanSafe Member
Feb 1, 2008
973
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California
Havent paid taxes last year-3600.00-dont intend to need my 401 k in case I need money on the table if this ever gets doneI will pay them with my tax refund next year--Its a shame when people have to close out there retirement fund.At this rate we will have a lot of oldsters on the welfare rolls collecting food stamps and living in the dark when they cant pay there electric bill.I already turn all my breakers off every morning and we go outside and read,play and eat sandwiches
Welcome to this forum,
I DO NOT RECOMMEND not to pay property taxes. While these amounts are often paid in the foreclosure process, you remain personally liable for them. That means you can be sued for non-payment. The first mortgage can also pay them and foreclose for non-payment.


Do you have an escrow impound which includes your property taxes? If you do, your lender pays for it once you missed payments to prevent the County Assessor's office to foreclose your house.

If you go to the County Assessor's office website you will get information about how your County in your city handles the property taxes in case the homeowner miss payments. They charged penalty and interest. They will allow you to make payments. Some accept promissory note or installment plan. So check it out at least you know what to do.

But you are right, don't use your 401K, you might need it to real amergency someday. and the lenders cannot touch 401k's, retirement and pensions.

Take care and God bless you
</O:p>
 

Pockets

LoanSafe Member
Feb 27, 2012
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Bank Of America and Mortgage Escrow

Good evening forum,

Okay I am really against the wall with Bank of America and could use some advice from the professionals.

First, I escrow my taxes, but for some reason BOA decided not to pay my taxes for the past two years. In Chicago (Cook County). I received a letter in the mail indicating that there was a tax lien on my property until the taxes were current. I IMMEDIATELY contacted BOA and asked what the heck was going on. For the past two years I have called when each installment comes and asked if my taxes were being paid. They assured me they were, well clearly they weren't. To add insult they refunded me two escrow overage checks. Well now, my taxes are current but my escrow is in arrearage by $10,000. So, I received my new mortgage statement indicating that my payment has now gone from $2,800 to $4,700 to cover the shortage. Are they crazy? Who could afford such? So, my question is what does one do in this case? Contact the tax department and ask for options? I feel it's bogus to raise my payment almost $2,000 for their error. Do, I have a leg to stand on here?

Second question is regarding an FHA loan modification. I just got divorced and having my loan modified would really help. And of course not paying $4,700 monthly. If the loan gets modified, will they move that escrow shortfall back into the loan?

Any help here would be greatly appreciated.