Can a lender foreclose for unpaid property taxes if only one spouse signed the note?

Full question:

Can a bank lender foreclose for default of reimbursement of property tax pd by lender and failure to pay into new tax escrow account when borrower is only the husband who is only signer of the note & resident is occupied by husband & wife. Original note payments are not if default.

  • Category: Real Property
  • Subcategory: Foreclosure
  • Date:
  • State: Indiana

Answer:

Yes, a lender can foreclose for default on the loan contract, even if one occupant is not a signer. The ownership on the deed is separate from the loan liability of the signers. Typically, paying property taxes is a requirement of the loan. Therefore, failing to pay these taxes can be considered a default, which may lead to foreclosure.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

If your mortgage company fails to pay your property taxes, first contact them to resolve the issue. Request proof of payment and clarify any miscommunication. If they do not address the problem, you may need to make the payment yourself to avoid penalties. Document all correspondence and consider consulting a real estate attorney for further action, especially if foreclosure is a concern.

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