Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
In FC about a year, just got notice from town that the first half year property taxes are not paid.

THey are supposed to be and have been under the terms of the mortgage.

Is this a game the banks lawyer is playing?

I emailed the bank's lawyer 10-12 days ago no reply

Quote 0 0
Paid Up
Quote:
In FC about a year, just got notice from town that the first half year property taxes are not paid.

THey are supposed to be and have been under the terms of the mortgage.

Is this a game the banks lawyer is playing?

I emailed the bank's lawyer 10-12 days ago no reply

Hello? The mortgage says that the BORROWER is required to pay all real estate taxes and if the taxes are NOT paid, then this is a separate breach of the mortgage from non-payment of the note. So when the taxes are unpaid, this actually creates another separate basis for foreclosure.

It is unclear to me what you think you are accomplishing by e-mailing the plaintiff's lawyer about this. It seems as though you are completely disconnected from reality about how to conduct an effective foreclosure defense.

It is not at all uncommon for lenders to begin stiffing local taxing authorities. They hold borrowers to a different standard than they hold themselves. They know that most localities will go years before initiating a tax foreclosure. Moreover, in some places, the taxing authorities must be made defendants in a lender foreclosure suit and under court rules they need to counterclaim for past due revenue anyway.

It is certainly a good idea to keep an eye on tax liability. But becoming concerned about the lender's non-payment of your taxes is a bit akin to stopping to check your cholesterol while you are low on ammo and your platoon's position is being overrun overrun by a brigade sized element of enemy armor. Sure, you might die of a heart attack due to high cholesterol, but it is more likely that you are about to be crushed beneath an enemy tank tread while you pause for the cholesterol test.

There is a lot of useful information about defending against foreclosure here at this site. If you are looking for help holding down cholesterol, you should be looking elsewhere.

Of course, you could voluntarily pay the taxes during your own foreclosure, but this is likely to prove to be a complete waste of money. Keep track of the liability. If there is ever any real danger of losing the property in a tax sale, the lender will cough up the funds in an instant.

Be sure to set aside enough money to make the overdue payments. If you get the foreclosure suit dismissed (in a judicial foreclosure state) and get past limitations, you may need to pay all the overdue taxes right away.

Oh, by the way. If you lose the foreclosure suit and the court orders a sale of your property, the lender may eject you from your house and then may delay recording the foreclosure deed for one or more years still leaving the property IN YOUR NAME on the tax records. They will continue NOT PAYING THE TAXES and let the taxing authority report YOU as being delinquent and even let the tax authority impair YOUR CREDIT by the bank's delinquency in paying the taxes after tax sale. Good luck trying to successfully bring a cause of action about this. You will find that no lawyer will take your case without another $5,000 retainer and in the best case the bank will just pay the overdue taxes and get your suit dismissed.
Quote 0 0
Carl
I have a friend who was very concerned that the lender stopped paying the fire insurance on his home after they got a judgment and while the matter was on appeal. He was also upset because his insurance company wouldn't let him insure a house he didn't own. I never really understood why he wanted to insure the bank's house. He lost his appeal.
Quote 0 0
unreg666

You must check your state law re filing of foreclosure.

ie in Florida if the property taxes are delinquent the Bank can not file foreclosure until the taxes are brought current and kept current.

Quote 0 0
Eric
Quote:
You must check your state law re filing of foreclosure.

ie in Florida if the property taxes are delinquent the Bank can not file foreclosure until the taxes are brought current and kept current.

This is always exceptionally sound advice. Other than the UCC, which is nearly uniform nationally, almost everything else about foreclosure is unique to the laws of a state. In some places, the taxing authority must be made a party. In other places, this is unnecessary.

Some places act on tax delinquency quickly. Most places do not.

Reading your state's statutes carefully and carefully reading the Rules of Civil Procedure is a very good idea. Mr. Roper told me to read all of the Civil Rules three times before I did anything else. Then he told me to read the cases on the rules that I thought applied to my case. He also said to re-read the rules upon receipt of every new notice or filing and also to re-read the rules before I filed any new filing.

I thought he was crazy at first, but I soon discovered that I knew this stuff better than the plaintiff's lawyer. This was very, very good advice!

If you ever have the privilege of talking to Mr. Roper, he can quote from the rules of almost any state by heart. If you like ask him something, he will like tell you, "read Rule 9", "read Rule 12", etc. He just knows this stuff cold.
Quote 0 0
unreg666
Quote 0 0
Abe
Quote:
I have a friend who was very concerned that the lender stopped paying the fire insurance on his home after they got a judgment and while the matter was on appeal. He was also upset because his insurance company wouldn't let him insure a house he didn't own. I never really understood why he wanted to insure the bank's house. He lost his appeal.

I know of a guy who was so taken in by the quiet title scam that after filing suit and losing and even after the non-judicial foreclosure of his house had been confirmed by court order dismissing his quiet title suit and he had lost his suit on appeal, he paid the scam artists another $5,000 for their "special suit" to set aside the prior judgment, etc.  The scam artists told him to be sure to pay the property taxes on the property even after it was in the bank's name, because he was absolutely certain to get his house back, but might lose it to the county if he didn't pay the taxes.

Getting him to pay the taxes was part of the scam, to assure his confidence in the impossible outcome.

The guy lost his house and paid upwards of $30,000 in legal and "consulting" fees, including the other purchased scam pleadings and reports.
Quote 0 0
Write a reply...