We're on our way to foreclosure. Should we be paying property taxes and HOA fees?
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The property taxes stay with the property and will ultimately be the responsibility of whoever purchases the home. (either the lender or the PMI company) Just because you bought at the top end of the market isn't a good reason to stop making payments and keeping your credit in good standing. You still have to live somewhere, right? My bet is the market will come around sooner than you think and you will be sitting OK. The only time the market changes are important is if you have to sell or have to buy. Otherwise, wait out this market. History shows temporary setbacks in most markets are just that, temporary. Houses are not like stock that you bail out of if the price goes down. Look, you bought the house with 0 money down. If after 5 years the value turns around and goes up even 5%, the return on your investment is incalculable. Hang in there, get a roommate, work out arrangements with the lender, but do everything you can to avoid foreclosure.
They are a lien against the property, and will have to be paid; if there are any funds left from the foreclosure. If you have no equity, they will be the problem of the buyer or the mortgage company foreclosing who needs to convey a clear title.
Yes but TRY to Avoid foreclosure at all costs. Look into re-fi
Up to the foreclosure date, you are responsible.
Foreclosure is almost never the best option. A short sale, if you can pull it together will nearly always be better than foreclosure. Among other things, you may be able to minimize the damage to your credit rating. With a foreclosure you have no bargaining room at all and will always take it in the shorts on your credit report.
You need to pay. Otherwise you will have three people lined up to sue you, instead of just the mortgage company. And you do not want the IRS after you.
The first thing you should do is contact a good broker who specializes in handling foreclosed properties ,The right broker will negotiate on your behalf on all accounts and still get his commission and no money will come out of your pocket and you will not wind up with a foreclosure. some late payments will appear on your credit ,But you do have the issue of hoa fees which in some instances can foreclose more quickly than the mortgage company can ,Check your bylaws from the assoc., Contact a good broker sooner than later he will best be prepared to handle all of your questions with regard to your state
Once the property goes into foreclosure you should (of course get legal advice on this!!) stop making any pymts since it's not going to help you out and typically, the lender has already facored the cost of paying off the taxes into the costs of the foreclosure..are you working w/ an attorney...I would get one because most likely you have a recourse loan and they will come after you personally...an attorney could advice you on how to deal eg file for personal BK too..
YOu need to pay the property tax. You are not off the hook. They will come after you, and you are just making your credit worse. Non-paying of taxes doesn't look good to anyone, employeers included.
Your HOA fees are a differant ball game. You should read the contract you signed, there is no cut and dry answer, varies by contract.
Don't bother paying them. In almost all cases, your HOA can only collect 6 months of dues from your bank in the event of default. The bank will have to pay the property taxes current in order to sell the property, so that's their loss too.
You can still play nice with your bank, get the house on the market (find a realtor who knows how to deal with foreclosures), and pass the offers on to the bank. They may accept a short sale now instead of waiting another 6-9 months while interest and legal costs build up. Cut the bleeding, as they say.
u should try re-fi. the last thing u want is a foreclosure. if u can't re-fi sell or you can have a contract drawn up to where some one can buy the property from you (like between you them and some one to be your witness or notary) the property will remain in your name and they would continue paying the mortgage and all other bills. this will give u time to get things back together. of course u can say within 2-3yrs u will want them to get purchase (obtain their own mort). while on this contract they will file all taxes on the house (why? because their paying the bills). its a win win situation. my best opinion again would to prevent foreclosure at all cost u will be better of in the future .
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