Foreclosure won't happen until after discharge

[wonkettegirl]

I am in the 60 day club, looking for discharge around February 1, 09. I am letting my home go into foreclosure. My bank has asked for a lift of the stay, so I assume they will go forward with the foreclosure when that is granted. Here's my question: property taxes on the property will be due January 31, 2009. At that point, the home will still be in my name. In fact, the home will probably be in my name for many months after that, depending on how long the foreclosure takes.

Am I liable for the property taxes? They were escrowed as part of my mortgage payments, which I made through August of this year. So only 2/3 of the year's taxes were paid by me and are being held by the bank. Yesterday I got a letter from teh city stating that my bank had made an "inquiry" as to the amount of taxes owed. Why would they do that?

The bank and the city were listed as creditors in my bankruptcy, but no discharge will occur until after the taxes are due. Help?

[B65]

are you saying

you wont be granted a discharge because the taxes are due?

B

[wonkettegirl]

you wont be granted a discharge because the taxes are due?

B

No, I think I'm asking if I owe the taxes - the property is still in my name when the taxes are due and the taxes won't be "forgiven" (i.e., won't be discharged in bankruptcy) until after they are due. So I am unsure how to proceed - pay the taxes?

[BassBoy]

Usually, the escrow is ahead. When you closed your loan, 6 months or a year's worth of taxes may have been part of those costs, called escrow. If that's the case, then you shouldn't have any issues regarding the taxes. The lender will pay the taxes in order to avoid a lien being placed on the property. This cost incurred by the lender will be added to whatever you owed and of course, will be discharged. Our forclosure took almost 18 months and we never heard a word from anyone about taxes owed.

[B65]

wow

18 months to foreclose.. thats a long time did you stop paying after the discharge or before? We are thinking about giving up the home but we are in the 60 day club and we are just wondering wether it might be best to stop paying after discharge as we do not want any issues to affect the chapter 7...

B

[BassBoy]

We filed in Oct.,05 and the last payment we made was Aug.,05. The lender requested to lift of stay after the 341, which was sometime in Jan.,06. Foreclosure and deed was finally completed in May,07 Countrywide takes a long time to get foreclosures done.