delinquent taxes/ lack of insurance?

[fae]

What is the name of your state SC

delinquent taxes/ lack of insurance?


I took a mortgage on my house with a "friend" in 2003 for close to double what the property was worth. I have never had insurance on the house and could not get insurance for the amount that the mortgage states. Our mortgage states, "Funds for taxes and Insurance. Subject to aplicable law or written waiver by Lender, Borrower shall pay all taxes and insurance and remain current on same, until Note is paid in full."

The mortgage has a balloon payment for 2018. Does this clause mean that the mortgage holder can call in the mortgage in full because of delinquent taxes or lack of insurance?

[FlyingRon]

Typically once the lender finds out you don't have the insurance, they will procure insurance for you (for an extremely high amount) and bill you. They'll also cover the taxes that way.

In 2018 you owe all the remaining balance (principal and interest) as well as any taxes/insurance the bank paid on your behalf that you didn't pay them.

Delinquent taxes the government normally comes after you directly for. Unless your name is on the deed, you're not liable to the government directly (though if the mortgage company paid them, you are to them).

If you don't pay things to the bank you are required to they can foreclose long before 2018.

[fae]

Originally Posted by FlyingRon

Typically once the lender finds out you don't have the insurance, they will procure insurance for you (for an extremely high amount) and bill you. They'll also cover the taxes that way.

In 2018 you owe all the remaining balance (principal and interest) as well as any taxes/insurance the bank paid on your behalf that you didn't pay them.

Delinquent taxes the government normally comes after you directly for. Unless your name is on the deed, you're not liable to the government directly (though if the mortgage company paid them, you are to them).

If you don't pay things to the bank you are required to they can foreclose long before 2018.

OK she has known since 2003 that no insurance has been on the property and she has not procure insurance . So is what you are saying is that she can foreclose now ?, well It sure sounds like you are daaaa to me.

Can you tell my the process of foreclosing. In other words what happens.

Thank you for your help.

[FlyingRon]

Can you speak English please. What is "daaaa."

She doesn't foreclose, the property gets foreclosed upon if she doesn't pay. The bank goes and after following the proper legal procedure and auctions off the house. She gets evicted. If the house doesn't sell for what is owed, they sue her for anything else she has. If you were cosigned on the mortgage, they come after you as well.

If she hasn't bought the insurance, she probably is getting away with that. As I said, they will buy you insurance if you don't pay and that you will owe.

[fae]

Originally Posted by FlyingRon

Can you speak English please. What is "daaaa."

She doesn't foreclose, the property gets foreclosed upon if she doesn't pay. The bank goes and after following the proper legal procedure and auctions off the house. She gets evicted. If the house doesn't sell for what is owed, they sue her for anything else she has. If you were cosigned on the mortgage, they come after you as well.

If she hasn't bought the insurance, she probably is getting away with that. As I said, they will buy you insurance if you don't pay and that you will owe.

OK sorry for the daaaa I was referring to myself as in dummy me.

Let me try to clear this up. The SHE is the person who holds the mortgage. It is not through a bank it is though an individual. Can she (the mortgage holder) foreclose and I think you are saying yes. Are you following me? Is that right ? The mortgage is for double the value of the house. It was a pretend mortgage between friends who have had a falling out. I know this was stupid. I am just trying to figure out the process. And what I can do to stop it before it happens

Thank you again for your help

[fae]

"Subject to aplicable law" can anyone explain what this means?

Thank you

[HomeGuru]

Originally Posted by fae

"Subject to aplicable law" can anyone explain what this means?

Thank you

**A: that means the law must be followed, if it applies.

[FlyingRon]

Where did all this money from the pretend mortgage go?

[fae]

Originally Posted by FlyingRon

Where did all this money from the pretend mortgage go?

I know it sounds wierd. I gave my daughter a small house when she turned 18 . Bad move on my part. She got involved with young man whom we felt would take advantage of her.

I owed my "friend" a few thousand dollars. She sugested we put a morgage on the property to protect it. In other words there was no money that went anywhere. Three years latter her and I had a falling out. Nothing to do with the morgage or money. Just personal BS.

The taxes are delinqent and insurance has never been on the property since the morgage was taken out. We just recieved a letter from her demanding insurance and of course the taxes be paid. I do not think I can get the amount of insurance on the property that will cover the morgage.

Since SHE has known for five years that no insurance has been on the property and that the morgage is to high to insure can she still foreclose ?

Oh and by the way the young man ended up marrying my daughter and they have three beutiful children

I appreciate any help !!
Thanks again

[FlyingRon]

Your story makes no sense whatsoever.
A mortgage between what lender and what borrower?
A few thousand dollars and more than the house is worth?
Why can't you get insurance?

[fae]

Originally Posted by FlyingRon

Your story makes no sense whatsoever.
A mortgage between what lender and what borrower?
A few thousand dollars and more than the house is worth?
Why can't you get insurance?

Ok the lender is the SHE a person, the borrower is my daughter and then myself as a life time right. The morgage is for more than the house/property is worth. The few thousand dollars has NOTHING to do with it. There was no monies exchanged. The morgage was written between "friends" in order to protect the property from the young man or whatever. The daughter was 18 years old when I gave her the property.

I was told that because the morgage out weight the value of the house/property that I could not get insurance to cover the "morgage"

So my question is can SHE the lender foreclose because of this.

Thanks again

[FlyingRon]

Did the mortgage get recorded?

What does the text of the mortgage document say? Is there a non-judicial foreclosure clause? Has any payments been made on this bogus mortgage? Has the so-called lender been paying taxes on this?

Unless you can get the friend to tear up this bogus mortgage at this point, it's going to have to take a lawyer to get this resolved.

[fae]

Originally Posted by FlyingRon

Did the mortgage get recorded?

What does the text of the mortgage document say? Is there a non-judicial foreclosure clause? Has any payments been made on this bogus mortgage? Has the so-called lender been paying taxes on this?

Unless you can get the friend to tear up this bogus mortgage at this point, it's going to have to take a lawyer to get this resolved.

Yes the morgage was recorded. No payments have been made . It was set up for full payment in 2018.

"Funds for taxes and Insurance. Subject to aplicable law or written waiver by Lender, Borrower shall pay all taxes and insurance and remain current on same, until Note is paid in full." Other than that I am not sure what you mean.

I do not know what a non judicial foreclosure clause is but I would guess not

No the lender has not paid any taxes or insurance.

I am hoping that I can avoid legal action for now. We were 'friends" for a very long time. She just had some major medical problems that have made her a bit wacky for now I hope.

So are you saying she can foreclose for lack of insurance? And if so what is the process ?

And thank you again

[FlyingRon]

She could foreclose for your breach of the mortgage contract. Without a right of sale clause in the contract (non-judicial foreclosure) she'd have to go to court to get a foreclosure. In doing so she'd have some 'splainin' to do with regards to the exact nature of this loan. Generally when people take out loans, the borrower gets money (usually paid to the person selling the property to them) in addition to the obligation? Who got money, who's making payments? Who's paying taxes on the tax obligations created here?

Why can't you get insurance. The financed amount has squat to do with the insurance. You typically insure only the value of the structure (the land isn't going to be destroyed).

But I will tell you, you don't pay the taxes, the county will take the property, sell it for the tax balance and give your friend/lender anything left over.

[fae]

Originally Posted by FlyingRon

She could foreclose for your breach of the mortgage contract. Without a right of sale clause in the contract (non-judicial foreclosure) she'd have to go to court to get a foreclosure. In doing so she'd have some 'splainin' to do with regards to the exact nature of this loan. Generally when people take out loans, the borrower gets money (usually paid to the person selling the property to them) in addition to the obligation? Who got money, who's making payments? Who's paying taxes on the tax obligations created here?

Why can't you get insurance. The financed amount has squat to do with the insurance. You typically insure only the value of the structure (the land isn't going to be destroyed).

But I will tell you, you don't pay the taxes, the county will take the property, sell it for the tax balance and give your friend/lender anything left over.

Alrighty I think I am finally relieved. I do not think she will go into court with the 'splannin' that would have to be done.

SHE is the one that told me that the insurance could not be obtained because of the amount of the "morgage" I am glad to know it can. And yes of course the taxes must be paid.

Fling Ron THANK YOU so much for your paitience and helping me figure this out.