Real Estate Taxes in Escrow

[PoorGrammyinBK7]

Just noticed on PACER that the county tax collector has filed a claim on our Ch7. I am sure this is probably just a normal procedure, but just wondered, since our taxes are included in our mortgage payment and held in escrow with our credit union, where we have our first mtg - what happens with that money?

We are current on the mtg and plan to continue payments. Still have not decided to reaffirm it or not (since we also have a 2nd with another bank) and the lawyer just put "debtor will retain collateral and continue making payments" on statement of intention.

[FreshLikeADaisy]

That's an interesting turn of events; like you, I kind of wonder why. Since taxes are non-dischargeable, and they are paid current (or should be) I think it's worth a call to the lawyer to find out whether the claim is a formality or something that really needs to be paid attention to. It would also be useful to know whether the claim is for the current tax bill, or if there are taxes involved that you are not aware of.

I hope more knowledgeable people can chime in, but that's my 2 cents worth. Good luck!!!

[PoorGrammyinBK7]

Thanks for replying, Fresh. I just now saw your reply.

Yes I will ask the attorney about this one. The amount looks like the real estate taxes.

I can't imagine what other taxes to the county there could be, but better check!