Legal Question in Business Law in Texas

morgage company did not pay schooltaxesfrom esscow

Our mortgage company did not pay our school taxes for 1999. We were paying into our escrow for these taxes. The year-ending escrow statement we received showed the taxes were paid in Dec of 1999. In February 2000, we received a refund check from the mortgage Co. for overpayment of money into our escrow account (accompanied by a statement saying they were required to send us this refund). We called, and they said our taxes were O.k., so we cashed the refund check. We then received a notice of lien foreclosure for not paying our 1999 school taxes. Our contract called for payment of these taxes by the mortgage co. by way of our monthly payments into our escrow account. We have paid recently for these 1999 school taxes, plus interest, penalties, etc., in order to avoid foreclosure proceedings. Who is legally responsible for the original taxes in this situation? Is there any recourse action we can take? Your advice would be greatly appreciated.


Asked on 3/27/01, 3:17 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: morgage company did not pay schooltaxesfrom esscow

If your facts are accurate the mortgage company owes all costs, fees, penalities and expenses above the actual taxes for its failure to follow the promises in the escrow agreement.

If they don't pay voluntarily, take them to small claims court.

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Answered on 5/31/01, 5:18 pm


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