[JACB12359]

[B][/
B]

My husband and I owe property taxes for 2006 & 2007. We really need to pay those as soon as possible. This is our first home and we love it and don't want to lose it. I was off work on LWOP for two years and we could only afford to pay our $3,300 mortgage payment each month. We were trying to refinance so our property taxes would be paid at closing but our refinance was denied due to late mortgage payment history. The question is: Do you know if we can get on a payment plan to pay our back property taxes? We live in Prince Georges County Maryland. We have been trying to reach ot tax division here but keep being put on hold. We owe $7,700. We can pay $700 a month for 11 months and it would be paid in full. Since we can't reach anybody, let us know if you know how we can go about getting on a payment plan. Thank-You--Johnette Brown

[AtlantaTaxExpert]

Ms. Brown:

Go to the county website (link below) for the address to send them a letter proposing that you make the $700 monthly payment.

Mail the letter certified mail with return receipt and include the first $700 payment by check.

They should respond by letter within a month.

Prince George's County, MD - Office of Finance : Treasury

You can also access the site below to investigate the collection process, which apparently is being handled at the state level.

SDAT: Tax & Assessment Information

[ScottGem]

Are you sure they weren't paid? Most lenders, especially for a first time home buyer, will require that they manage an escrow account for you. Part of your monthly payment goes into this account and they pay taxes and homeowners insurance from it.

A $3300 monthly payment would mean a loan of around $600K. Is that how much you borrowed? Have you received any notices from the county about past due taxes?

[AtlantaTaxExpert]

Scott has made some valid points.

I assumed that you had waived the escrow requirement (it can be done in most states if you can show that you have the means to make the payments yourself).

But that may NOT be the case.

So, did you waive the escrow or not?

[JACB12359]

My husband and I did not have our taxes escrowed. I talked to tax and revenue today and unfortunately they don't take or make payment plans. We have to pay the whole $7700 amount owed plus $4500 in attorney fees. I called my mortgage company and they informed me that before they would allow Maryland to foreclose on our home they would step in and pay, then force us to be escrowed mortgage holders. That was music to our ears. At least with this option we won't lose our home. We'd have to pay an additional $200-$300 a month, but that's worth it. Let me know if you've ever heard of a mortgage company paying for back property taxes. This is the first I've heard about this. Thanks for your responses to my question.

[Fr_Chuck]

Of course a mortgage company is going to pay them, that is why you never seen nice expensive homes with a mortgage being sold at the tax sales.

But normally becuae you would be in default with the loan, and be foreclosed , they don't have to allow you to do a new mortgage ( and why in the world they just will not do a new mortgage up front is beyond me)

Be sure to get this promise from them in writing, since once the foreclosure happens, you have no legal right to the home unles there is a written agreement in place with the lender.

[ScottGem]

I really don't understand how you managed to get a loan without an escrow. But yes, the bank will step in to prevent it from going in a tax sale. And yes you will now be subject to pay escrow, but I think its going to cost you a LOT more than $200-$300 /month.

First, you have to pay future taxes. If you owed $7700 for the last two years, then your taxes will be around $4K and that doesn't take into account the Insurance which will probably be over $1500. The bank is going to calculate your escrow so that your balance never falls below 2 months worth of payments. So you are looking at at least a $450/mth payment. And that doesn't deal with the $7700 they are advancing you nor the $4500 in legal fees. Hopefully they will just back load that to the end of your loan.

I'm afraid you are looking at more than $500/mth as your escrow and that's just to start.

[AtlantaTaxExpert]

Agreed! Expect to pay AT LEAST an additional $500 each month!