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    Another Letter

    I have received several types of letters from my mortgage company that arrived regular and certified mail.
    Today I received another general delivery letter that states the property may be referred to foreclosure.
    This letter was a little different than the usual and included this:
    "Borrower's Responsibilities
    If you continue to occupy the property, you have the responsibility to maintain the property and an obligation
    to continue to pay taxes owed until a sale or title transfer occurs.
    If you wish to abandon the property, you must contact us to discuss alternatives to foreclosure under which
    you can surrender the property in exchange for compensation"

    My attorney advised me not to pay any property taxes even though the tax is very low. While I am enjoying saving money by not paying my mortgage I also find the situation stressful. If I found a suitable house to rent I would like to abandon this property and move one but I am concerned with HOA fees/taxes and other costs I am obligated to.
    Does anyone have any idea what they mean by, "can surrender the property in exchange for compensation."

    #2
    They mean that they may offer you "cash for keys," meaning they will pay you to voluntarily vacate the property. It can't hurt to call and ask what they are willing to offer.

    If I were you and they don't pay you to move out, I'd take advantage of the nearly free rent for as long as possible and not pay anything other than the HOA fees. Ignore their threats and don't let them stress you out. That's exactly what they are trying to do.

    ETA: The reason your attorney says not to pay the property taxes is that the property taxes will be paid off from the sale proceeds before the property is transferred to the new owner. Or, if the bank doesn't foreclose, the county might eventually foreclose and sell the house to pay off the taxes.

    The following is from http://www.tennesseetrustee.com/node/233

    Real Estate Taxes become delinquent on March 1st of each year. After March 1st, interest and penalty charges begin accruing on the base tax balance at 1.5% per month (1% interest, .5% penalty) or 18% per annum. Payments made on delinquent taxes are first applied to charges, then to the base tax amount. Unpaid delinquent taxes may be subject to lawsuit, incurring court costs, attorney and miscellaneous fees, and eventual sale of the property.
    Note that it doesn't say anything about garnishing wages or bank accounts or confiscating any other property.
    Last edited by LadyInTheRed; 07-18-2014, 01:06 PM.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


      #3
      LadyInTheRed,

      Thanks for the advice. I will call my mortgage company this week and see what they propose. I was waiting for my discharge before starting any action and I just got that.

      Comment

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