# Mortgage Renewal with Outstanding Property Taxes



## Simplydunn (Jan 21, 2014)

I am just looking for some advise, and maybe a little peace of mind so I can sleep at night.

We purchased our home about 5 years ago and it is coming up for renewal in May. We have not had problems paying our mortgage until recently, just before Christmas we hit a snag and fell behind a few payments but have contacted the bank and made arrangements to get everything paid up. Our other issue is that our property taxes have fallen behind significantly, again we have made arrangements for the repayment but it will not be caught up by our renewal date. I just wondered if anyone knows if this is going to be an issue with the renewal process. I am having nightmares about losing my home.

I'm not sure if this is significant, but the value of our home has also increased dramatically since we first bought the house. Will this have an impact on our situation?

Any feedback, advice would be greatly appreciated.

Thank you.


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## Mechanic (Oct 29, 2013)

I recall many years ago, the taxes were included with my mortgage payment, through the bank. Perhaps if you talk to the bank they could offer advice to alleviate your situation.


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## marina628 (Dec 14, 2010)

You can delay the renewal for 2-3 months by default it will just go to the variable interest rate while you catch up on the property taxes.If the house has gone up in value and this is a temporary set back you could look at getting a small credit line as a buffer until things get back to normal.


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## Mechanic (Oct 29, 2013)

I always found the bank to be helpful. Perhaps they could consider advancing the funds to clear your debt and add it to the mortgage to get you back on your feet ? But, if the situation that caused you to get behind has not been corrected, that idea will only defer the problem. The other thing to bear in mind is that you will end up paying interest for 20 yrs (or whatever is left on your mortgage) on the advance, as it will become part of the balance of your mortgage owing. I think your first step is to make an appointment to talk to your mortgage renewal person and see what advice/solutions they offer. The fact that your home has increased in value should help.


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## MRT (Apr 8, 2013)

is generally in any mortgage contract that the borrower agrees to keep the taxes up to date, and since outstanding property taxes take priority over any mortgage in the event of a claim (default), banks very much care that the taxes are paid to date.

having said that, banks are not in the business of forcing people out of their homes...it is costly and time-consuming. Banks tend to work with borrowers to get back on track by whatever reasonable means possible. what your bank will do likely depends on whether they even know about the tax arrears, and (if so) how far behind you are.

if you have a payment arrangement with the municipality already, then you should be fine. 

how far behind are you right now, and when do you think you will be caught up vs. the renewal date?


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