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Wat about not paying property taxes, condo maintenance fees?

Posted on: 16th Dec, 2008 10:42 pm
hi,
i am now 1 month late on paying my mortgage/property tax bill. i am being sent a packet to fill out from wells fargo mortgage to see if they will grant me a deed in lieu of foreclosure. i have my honolulu condo on the market with no offers for 11 months then off the market for 6 months and now back on again for the last month at a short sale price. property is unsaleable due to huge increase in maintenance fees and lease rent (leasehold property). i have had no income for the last 8 months and can not continue to pay the mortgage.

my questions are: should i stop paying the monthly lease rent to the lessor($400) and the monthly condo maintenance fees to the association ($400) and the property tax as i will be either doing a dlf or a foreclosure? or will i be liable for unpaid amounts at the end? if i don't pay these now, will those be separate items on my credit report that bring my score down even lower than the dlf and foreclosure? how does this work?

thanks for any help.
Hi Aloha

As far as I know, you will have to pay the monthly lease rent and the condo maintenance fees. If you do not pay them, you will be liable for the unpaid amount. As far as property taxes are concerned, if you have an escrow account, then the property taxes will be paid from that account. However, if you don't have an escrow account, then you will have to clear the taxes. If you do not pay the lease rent, condo fees or the property taxes, it can get reported to the credit bureaus and will have a negative impact on your credit report.

Thanks.
Posted on: 17th Dec, 2008 02:01 am
I called Wells Fargo and they said as long as the loan exists they pay the property taxes even if the escrow balance isn't enough. When they pay the February payment, my escrow account will be $90 short. If they give me a DLF will I have to come up with the difference and will that show up on my credit report? How about if I have to do a foreclosure instead and that takes 8 months as they are predicting?

In HI we have something called a limited priority lien for condo associations of up to $1800 so they can collect the missed monthly condo fees. Will I still get dinged on my credit report for these unpaid condo fees as being late and unpaid?

Thanks
Posted on: 17th Dec, 2008 01:11 pm
Hi Aloha

You have mentioned that :
"I called Wells Fargo and they said as long as the loan exists they pay the property taxes even if the escrow balance isn't enough. "
If Wells Fargo will pay the property taxes even if the escrow balance isn't enough, then I think you will not have to pay the deficient amount of $90. I don't think that you will have to pay the deficient amount to the lender because as you handover the property to the lender, it becomes the responsibility of the lender.

I don't think foreclosure will be a good option. Check out the following link to know how foreclosure affects credit score:
http://www.mortgagefit.com/discuss/foreclosure-effectcredit.html

As far as your condo fees are concerned, yes, if they are unpaid or paid late, they will definitely get reflected in the credit report.

Thanks.
Posted on: 18th Dec, 2008 02:19 am
I'm with wells fargo as well.
Taxes for my property are due february 2000.00.dlls
I told county tax person I would pay 1000.00 in mid february and balance
mid march.
Will Wells Fargo take any action on this...do I need to call them ??
Posted on: 26th Jan, 2009 05:35 pm
Hi Billy,

I guess, you do not have an escrow account with your lender. As you will late on your tax payments, I would suggest you to inform your lender about this.

Thanks.
Posted on: 27th Jan, 2009 12:34 am
my mom died in 2009. taxes on her condo were due March 1. The amount is 900.00 dollars I don't have the money/ as of now it is late how long before any action is taken o their part and what will the action bee.
Posted on: 10th Apr, 2010 02:12 pm
Hi Kim,

If the property taxes are not paid on time the taxing authorities can place a lien on the condo and it can be put up for tax sale. However, the property will not be immediately sold off. If the tax payments are not made on time, penalties and fees will be charged. If you are delinquent on the taxes for more than about 5-6 months, the property could then be sold off at the tax sale auction.
Posted on: 12th Apr, 2010 12:49 am
I am on the board of a condo assoc. We have placed a lien on several propertys because of unpaid dues, but they don't seem to care, and we need to fix roofs etc. and are running out of money. Please help us with some information. Thanking you in advance.
Posted on: 28th Aug, 2010 07:15 pm
Hi Bettie,

If the owners of the property are not paying the dues, then the condo association can foreclose the property and sell it off to new buyers. The money that you receive from the condo sale will help you in improving the other properties.

Thanks
Posted on: 30th Aug, 2010 12:52 am
Posted on: 23rd Jan, 2011 09:04 am
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