The Ox and the Ditch: FAQ - Pay Property Taxes Before Foreclosure? Other Legal Issues Prior To Foreclosure?
This is a special series of blog entries in which we provide some quick answers to lenders' frequently asked questions (FAQ). Two things should be kept in mind. First, none of these questions can be answered in a vacuum. Questions should be considered with a thorough review of the file and an interview with appropriate loan officers. And secondly, many of the questions are worth revisiting from time to time because subsequent events will impact the answers.
FAQ #7 - Should I pay the property taxes prior to foreclosure?
Taxes and Escrows: Escrows may be in your possession and available for tax payments. Taxes should typically be paid prior to foreclosure in order to add them to the loan deficiency amount--unless it is your plan to sell at the close, subject to taxes to a third party.
FAQ #8 - What other legal issues or hurdles should I consider in proceeding with foreclosure
Each state's law governs when and how a lender proceeds with foreclosure. The following questions should be considered:
- Is there an anti-deficiency statute or single cause of action rule?
- What are the mechanics lien filing periods?
- What are the content and timing requirements for sending notice of default and acceleration?
- How does my course of dealing affect the existence of the default?
To read the entire Tough Times FAQ series, please click here.
We are interested in acquiring multihousing properties that were financed by 221d4, primarily non perfomring properties that have not yet been stabilized. How does this process work with HUD? Do they handle foreclosures in a more public way, or will they sell loans at a discount without a public sale process?
Unfortunately, we're not familiar with HUD - we don't represent their special servicing group. I suggest that you look at their website, do a search on Google and Firefox, and even search using Google Blog search.