Bankruptcy & non-escrowed mortgage loan – Practitioner Tip

31 Oct Bankruptcy & non-escrowed mortgage loan – Practitioner Tip

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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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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