We are currently considering foreclosure on a $1600 per month mortgage which includes $500 in escrow. If we do go ahead, will we still have to sort out and pay the escrow for tax and house insurance?
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Usually, escrow is 6 months to a year in advance, so you should be fine for a while. The lender will pay the taxes and acquire their own isurance if need be. If the taxes are not kept up to date, the county will place a lien on the home, which the lender doesn't want to happen during the foreclosure process, so the lender will keep up the taxes. The amount the lender continues to pay will be added to the amount you owe them and will be discharged in the BK.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.
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