What to do about delinquent property taxes and a loan modification?
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What to do about delinquent property taxes and a loan modification?
I went through a loan modification in 2009; at the time there was delinquent property taxes due. The lender did nothing about it and now the taxes have escalated to a huge number. I had asked at the time for the lender to include any taxes and insurances for the future to be added as an escrow account so that we would have 1 payment covering all taxes, insurance, mortgage. So far I have written many letters asking them to pay the taxes and set up an escrow account;so far they will not do so until the property is in jeopardy of tax sale. Why wait that long? Is there anything that I can do?
Asked on March 29, 2011 under Real Estate Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The lender is not obligated to take care of your tax liability for you; they often do so, as a matter of convenience and to ensure that the taxes are paid (protecting their interest in the property as well), but ultimately, it is the homeowner who is responsible for his or her property taxes. This seems to be a case where the lender has decided that taking on additional responsibility in regards to your property is unwise, and you cannot make them do so.
You will have to deal with the taxes yourself. Contact the taxing authority and see if you can't either settle the taxes for less than full payment or work out some payment plan that you can afford. Good luck.
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