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Bank has stopped paying Homeowners Ins and Prop. taxes. What to do?

Posted on: 07th Aug, 2010 11:33 pm
We stopped paying our mortgage about a year ago. In the past two months we have received and paid a settlement for our 2nd and LOC that was taken against the home. Our property taxes and homeowners insurance were impounded into our 1st mtg pmt. Since we've stopped making the pmts on the mtg I've noticed that the impound account was also going more and more negative. I assume this means the bank was still paying those two pmts. What happens if the bank stops paying them? Also, if we move out while the home is going through foreclosure, do we still pay the ins and tax even if we are not in the home?
Thank you for your help!!!
Hi kcheartlc,

Unless the property is sold off at a foreclosure auction, you would be liable for paying the homeowners insurance and property taxes. Once the property is sold off at the foreclosure sale, you won't be liable for the property taxes and insurance.
Posted on: 08th Aug, 2010 10:07 pm
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