Foreclosure and monthly payments

[Jacob G.]

I am foreclosing on a house because the owner did not pay his property taxes.

The owner made his payment this month even though the house is in foreclosure. Is this a strategy of his? What should I do?

[Don Konipol]

@Jacob G.

Each state has different laws concerning foreclosure. Sounds like the foreclosure action you initiated was based on a violation of the deed of trust or mortgage concerning non payment of property taxes. Although he has now paid the property taxes, the note has a.ready been accelerated and payment in full is due.

In Texas, you could continue the foreclosure as the only way to stop the foreclosure from happening would be for the debtor to pay off the note in full. Other states may have periods of time in which the debtor can “cure the default” and hence you would not be able to foreclose. The debtor would also have to pay you all fees associated with the foreclosure action.

The laws regarding foreclosure are state specific, and therefore are best answered by a real estate attorney licensed to practice in the state in which the property is located. Further FYI, the foreclosure action can be stayed by a bankruptcy filing on the part of the debtor. The bankruptcy court then has absolute authority to determine whether or not you can foreclose, as well as everything else related to your note. If the default has been cured, the BK court is unlikely to look at your wanting to continue foreclosing favorably, especially if this is an owner occupied residence.

As per your question concerning the borrower’s non payment of taxes and then payment after your foreclosure filing “ is this a strategy?”. Strategy for what? In any case, how would anyone on this forum know what the borrower is thinking, or his motivations?

Pay for two hours of a real estate attorneys time and get specific answers to your questions.