When you first took out a mortgage on your home, you likely set up an escrow account with your lender. An escrow account is set up to take care of your property taxes and homeowner’s insurance payments.
It can be easy to forget about this account over the life of your mortgage. However, while homeowner’s insurance is optional, your responsibility for making property tax payments never go away. If you fail to keep up with your property tax obligations, you may find yourself facing the threat of foreclosure.
What can I do if my house is in foreclosure?
If you have fallen behind on your property taxes, one way to prevent a foreclosure is to pay them off all at once. However, many people may not have enough cash on hand to make such a substantial payment. The good news is debt relief options are available.
When you file for Chapter 13 bankruptcy protection, you will put an immediate stop to foreclosure proceedings. A Chapter 13 filing can provide you with the time you need to get your finances in order and potentially save your home.
If you have additional debt that is not coming from unpaid property taxes, a Chapter 13 filing enables you to reorganize this debt. A reorganization allows you to make affordable payments on your debt over three to five years. Most unsecured debt left over at the end of the repayment period will be discharged.
Auction season is upon us
June marks the beginning of the auction season. If you have fallen behind on your property taxes and are concerned about the threat of foreclosure, discuss your situation with a skilled professional.