Bankruptcy & non-escrowed mortgage loan – Practitioner Tip
By Pamela Stewart, Attorney at Law on Oct 31, 2007 in General Bankruptcy Information, Tax Issues In Bankruptcy
If a debtor’s loan is a non-escrowed loan and the property taxes are current when the bankruptcy case is filed, the debtor should consider scheduling the taxing authorities for notice purposes only so that if the debtor becomes delinquent on post-petition taxes, the taxing authorities do not file suit in state court and then proceed to tax sale. Taking this step may save the debtor from having to pay additional attorney fees to the taxing authorities for bringing the lawsuit and/or conducting a tax sale.
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