Past due Real Estate property taxes

[Pasofino]

In AZ filing chapter 7. Please help with property taxes.

I have 2 rental homes that have foreclosed.

I have two rental homes that are in foreclosure.

I have my current home which I owe property tax on but want to keep but do not want to reafirm.

Can someone please help me with what scheule to list the
property taxes on and how this plays out.

thanks

[justbroke]

I have my current home which I owe property tax on but want to keep but do not want to reafirm.

Just don't reaffirm, but suffer the consequences of the Taxing authority issuing a tax certificate, tax deed, or it being sold at a tax auction.

Depending on where you live, your property taxes may be "statutory" liens. In most States, a statutory lien is placed on the home on January 1 of the year in which the taxes are assessed, in the amount of the prior year's taxes (subject to adjustment). This means that you always have a lien in the current year, until you pay them. If you have a statutory lien, then you need to list those on Schedule D as "Secured". If your State doesn't make property taxes statutory liens, then you're lucky and can put them on Schedule "F" as unsecured.

Please be aware that your lender may pay the tax and force an escrow account on your property. This may make it difficult to stay current as they'll not only try to collect the back property taxes (over the course of 12 months), but also include the new escrowed taxes prorated to collect over 12 months. I now have an escrow account with payments of $2,100 a month in addition to my mortgage payment! (Because they paid taxes they weren't supposed to pay, but that's another story.)

Sorry I can't be specific because it's specific to your State. For Florida, they are statutory liens.

[dspii]

Please be aware that your lender may pay the tax and force an escrow account on your property. This may make it difficult to stay current as they'll not only try to collect the back property taxes (over the course of 12 months), but also include the new escrowed taxes prorated to collect over 12 months. I now have an escrow account with payments of $2,100 a month in addition to my mortgage payment! (Because they paid taxes they weren't supposed to pay, but that's another story.)

Justbroke, I just realized I may be in the same situation. My property taxes were due in early February and I knew I would have to wait until end of February or early March to pay. I have been current on my mortgage, no dings except BK, ever.

Well I get an email from B of A saying my taxes were paid, I did not even receive a delinquincy or late notice from the county. I still can't access my mortgage account online to verify, but according to the online county records, my tax bill was paid March 8th. I have been trying to call the BK depatartment at B of A during normal business hours, only to be placed on perma-hold.

Is it likely that they will foreclose, due to the "clause" in my loan agreement or will they start an escrow account for me? I have been discharged but not closed as of 12/21/09.

I can pay my taxes now and actually intend to once I confirm with B of A. Is it normal for them to pay these taxes within 2 weeks of the past due date with no escrow?

[justbroke]

Is it likely that they will foreclose, due to the "clause" in my loan agreement or will they start an escrow account for me? I have been discharged but not closed as of 12/21/09.

Reads as if they already escrowed the taxes. You should get an escrow analysis in the mail soon.

I can pay my taxes now and actually intend to once I confirm with B of A. Is it normal for them to pay these taxes within 2 weeks of the past due date with no escrow?

Yes, this is normal. I don't remember if you reaffirmed or not, but if you didn't, the Bank is protecting their interest in the property. They don't want a tax certificate issued! (Tax certificates are usually issued in April.)

[dspii]

Thanks for the response. I guess I can live with escrow, it beats coming up with $1500 every 6 months. I was suprised that I didn't get a notice that my taxes were past due until I got an email that they paid them. I did not reaffirm as B of A doesn't do it.

I had read in the forum that they can foreclose due to a clause in most loan agreements. Although unlikely, but I was concerned because we are planning to ride the storm until better days.

[justbroke]

Well, you'll just have to see. If you're paying, trust me, they like that more than foreclosing. Your escrow account will balloon your payment. If they paid $1,500 for you, they'll get $125/month for the "new" escrow account, and at least $125/month for the "shortage" created. Plus there may be some "makeup" payments if your taxes are normally paid (with the best discount) in November.

[dspii]

That's $1500 a half....so I can expect a $250 increase per month...that's if I catch up what they paid