QUESTION
Can lender refuse to accept payment of past due mortgage payments unless we pay all back property taxes?
Asked on Jun 21st, 2013 on Foreclosures - California
More details to this question:
We have a hard money loan which is in default. There is a mortgage/deed of trust. Lender agreed to give extra month to bring current before filing final papers which would give us about 30 days before house is offered up for auction on court steps. We have enough to cure default but not the tax. Can he really refuse us paying him in full and proceed to foreclosure because of property taxes that haven't even become a lien?
2 ANSWERS
1 Award
In CA, yes. Failure to pay property taxes is normally a breach of the loan contract, which in turn forms the basis for foreclosure.
Answered on Jun 23rd, 2013 at 7:51 PM
Your deed of trust probably says that if you are in default in any respect, the lender can refuse payments. You should read the deed of trust to see if default is defined as including failure to pay taxes. Are your taxes included in your monthly payment?
Answered on Jun 23rd, 2013 at 7:51 PM