Legal Question in Real Estate Law in Massachusetts
My mortgage lender paid my arrears property taxes of $31K. I never had an escrow acct and did not authorize them to do this...can they do that?
Now they want to raise my monthly mortgage payments from $1,500.00 to $4,000.00 to pay back the property taxes...can they do THAT?
2 Answers from Attorneys
The only collateral that your lender has for that large loan they gave you is your parcel of real estate and the mortgage you granted them.
You promised them in your mortgage documents that you would not do anything which would harm or impair the real estate (their collateral) and you gave them permission to step in and pay arrears and other deficiencies in order to preserve the real estate (their collateral).
The answer is yes, they are entitled to step in and save the real estate from being taken, and then seek repayment from you.
Short Answer is yes. they could foreclose for your failure to pay the taxes. They paid the taxes and are seeking reimbursement from you. Their action is reasonable.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
