My home is going into foreclosure, the taxes are usually paid with my escrow account. What now?

Answer 1

If the house is not in foreclosure you have several options. It does not matter that you taxes and/or insurance are in an impound account and are paid by your lender.

#1 Call your lender speak with the Loss Mitigation's specialist there and see if you can change the terms of your mortgage so they might be lowered.

#2 Sell the house before it goes into foreclosure

#3 Refinance the house and pay off you existing mortgage. You will have a higher interest rate, because your credit report will reflect the fact that you are late paying your mortgage.

After it has gone into foreclosure

#1 Sell the house

#2 Try and get your lender to accept a short sale

#3 Talk to your lender about a deed in lieu of foreclosure

#4 You can continue to attempt to refinance.

#5 You may continue the pre-foreclosure things also

Depending on the state you are in which you are in you could have at least 120 days or more before someone tell you that you have to depart from the house.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

The foreclosure will take care of the taxes. Either the new buyer will pay them at the auction or the foreclosing lender will take care of them once it becomes a REO.


Regards