I HAVE A REVERSE MORTGAGE BUT HAVE BEEN UNABLE TO MAINTAIN REAL ESTATE TAXES SINCE I LOST ONE SOURCE OF INCOME. NOW THE MORTGAGE COMPANY IS STARTING TO FORECLOSE. CAN YOU HELP ME.
At TAIEBLAW, we have seen several senior citizens who have faced foreclosure on their property since they fell behind on real estate taxes. There definitely is an answer to save your home.
A Chapter 13 bankruptcy gives you up to 5 years (60 months) to pay back the taxes that the mortgage company advanced. You would have to pay a bankruptcy trustee monthly payments over the next 5 years. Also, in a lot of instances you would be able to eliminate any credit card debt or medical debt depending on the equity in your property. However, the most important thing is that the bankruptcy will stop foreclosure.
However, when you are in this plan you have an obligation to pay post-petition taxes to the Township that are due for future months. Real Estate taxes are due the 1st of February, 1st of May, 1st of August and 1st of November in New Jersey. If you fail to make current tax payments, the tax department or mortgage company will file a Motion to Lift the Bankruptcy Stay and foreclosure will be allowed to continue and/or your bankruptcy case will be dismissed.
If on the other hand, you do not want to keep the home and want to downscale, you can just file a Chapter 7 and get a fresh start and let the home go.
Most seniors will qualify for Chapter 7 except in the rare case where seniors have substantial pensions and social security and have a large surplus in their budget.
However, if you are falling behind on real estate taxes and the mortgage company is starting foreclosure, contact TAIEBLAW to learn how we can help you.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 and schedule a FREE initial consultation.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.