by | Jul 9, 2021 | Chapter 13 |

The Coronavirus has not only impacted many homeowners ability to pay their mortgages, it has impacted their ability to pay their real estate taxes as well. For example , let’s say a homeowner in Cherry Hill NJ has a mortgage that does not escrow for taxes and the homeowner was unable to work during much of the pandemic. They may have fallen behind on their mortgage payments although perhaps their lender is willing to do a modification. However, if they fell behind on their real estate taxes and there is a tax sale certificate sold, the purchaser can foreclose on the property two years after the purchase of the Tax Sale Certificate. Generally the tax lien purchasers will not accept from the homeowner monthly payments but only the entire balance owed. That is where a Chapter 13 can be used. It would allow you to pay the back real estate taxes over 3 to 5 years. This situation can also arise where there is no longer a mortgage or there is a reverse mortgage. It is important to keep in mind that unlike a real estate mortgage foreclosure which can take a long time even after the foreclosure judgment is entered, the loss of the property with a tax sale certificate happens much faster once the foreclosure suit is filed.


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