Apr
14
If your loan is in foreclosure and you have funds in an impound account, will they be refunded to you?
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For example, our homeowner’s insurance is in an impound account, as well as property taxes. Will any of this come back or will it be absorbed into what is owed to the lender?
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2 Comments
April 17th, 2009 at 4:16 am
Likely no.
Since you are responsible for taxes until the day the home is foreclosed on or sold.
Since your being foreclosed on, it is likely you owe more taxes + insurance than you have accrued.
April 20th, 2009 at 2:02 pm
You’re kidding, right? First they money isn’t your money. It’s for the taxes and the insurance. And until the judge oks the foreclosure, you still own the house and owe on it.
YOu will owe the bank the difference and the IRS taxes on the difference.