April 28, 2009
Esgrow, mortgage debt(havent been able to pay in a while), soldiers and sailors civil relief act PLEASE HELP?
d.a.f.d. asked:
ok here is my dilemma. i am a soldier in the army and about a year before i joined the army i purchased a house in which i got an esgrow included in my monthly payment. my problem is that i am currently at my duty station and paying rent along with all my other bills and mortgage and i dont have enough money to pay on my mortgage which is why i am now on the soldiers and sailors relief act, and i have not been able to pay on my mortgage for 6 months, however my house has been on the market but is not selling. my question is, at the end of the year when property taxes are due (im from illinois) will my property taxes be taken care of because i have an esgrow account or is this something that i will have to somehow come out of pocket for, and if i have to come out of pocket, there is a possibility i might not be able to pay it on time or all at once, will the state be able to work something out with me because i am willing to pay my taxes…i am really struck for cash at the moment and having to take care of both house payments( my rent at my duty station is about 300 more than my mortgage) please only answer if you have a knowledgeable answer because this is a serious question that i want to get resolved and get into contact with the right people asap. thanks
ok here is my dilemma. i am a soldier in the army and about a year before i joined the army i purchased a house in which i got an esgrow included in my monthly payment. my problem is that i am currently at my duty station and paying rent along with all my other bills and mortgage and i dont have enough money to pay on my mortgage which is why i am now on the soldiers and sailors relief act, and i have not been able to pay on my mortgage for 6 months, however my house has been on the market but is not selling. my question is, at the end of the year when property taxes are due (im from illinois) will my property taxes be taken care of because i have an esgrow account or is this something that i will have to somehow come out of pocket for, and if i have to come out of pocket, there is a possibility i might not be able to pay it on time or all at once, will the state be able to work something out with me because i am willing to pay my taxes…i am really struck for cash at the moment and having to take care of both house payments( my rent at my duty station is about 300 more than my mortgage) please only answer if you have a knowledgeable answer because this is a serious question that i want to get resolved and get into contact with the right people asap. thanks
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Comments on Esgrow, mortgage debt(havent been able to pay in a while), soldiers and sailors civil relief act PLEASE HELP?
How much money is in your escrow account? If it’s enough to pay the taxes, then the bank will use it to pay the taxes.
If not, the escrow may not pay the taxes and one of two things will happen: either the lender will make an escrow advance and then begin foreclosure proceedings, or you’ll have to pay the taxes yourself. If the escrow does not pay the tax bill,
you may be entitled to temporary stay of the tax bill under the SSCRA but it is not automatic; you would have to petition a court in the relevant jurisdiction for relief.
(Finally, I think you may be a little confused about something. SSCRA gets you a 6% interest rate. It does not get you out of the obligation to make payments altogether. I am surprised you aren’t already in foreclosure!)
If you have not paid your mortgage and escrow payments, the only amount of funds in your escrow to pay property taxes will be what you have paid in. It’s probably not sufficient to pay the annual property taxes on the property. In other words, if the property taxes are $3,000 and your escrow account only contains $1,500, then the other $1,500 will need to come out of your pocket.
The State of Illinois has nothing to do with your property taxes. That is handled by the municipality in which the property is located. You will need to contact the treasurer of said municipality and attempt to explain your dilemma. They may work with you on deferred payment, but the taxes due will not go away. Such municipalities are not covered under The Soldiers and Sailors Relief Act. Property taxes follow the property, not the owner.
If you have an escrow (impound) account with your mortgage, your taxes will be automatically paid out of that account. If for any reason there isn’t enough money in the escrow account, they will pay them anyway and a few months later you will get a letter raising the monthly payments enough to absorb the higher cost.
Is there something that precludes you renting the house while you are away? That could provide enough money to make your mortgage payments.