Can Note Holder Foreclose - Posted by Duke

Posted by Jim FL on July 20, 2002 at 14:47:45:

Read the note.
What does it say about the taxes being paid?
What does the note say about the lender protecting their interest?
By curing the defaulted taxes, the lender was protecting their position, and therefore the taxes they paid are now due to them by the title holder.
So No, based on what you said, the note is indeed in default and the holder can foreclose.
Again, read your note to be sure.
And/or, pay the note holder for the taxes they covered for you.

Have a nice day,
Jim FL

Can Note Holder Foreclose - Posted by Duke

Posted by Duke on July 20, 2002 at 14:10:29:

I would like to see if someone can answer this question.
Can a note holder (1st position and no mortgage co.) Foreclose on a property if their note was never behind in payments. The reason I ask is the note holder cured a tax default that was to allow property to be sold in a couple of days but their note was never in default. Can they foreclose on this property now?

Grantor’s Obligations - Posted by Bud Branstetter

Posted by Bud Branstetter on July 20, 2002 at 17:49:52:

Here is the verbage from a standard Texas Deed of Trust. Notice it says to pay the taxes. It also says to maintain the property. The remedy is normally to foreclose if they do not keep up their obligations.

Grantor’s Obligations

  1. Keep all property in good repair and condition:

  2. Pay all taxes and assessments on the property when due;

  3. Preserve the lien’s priority as it is established in this deed of trust;

  4. Maintain, in a form acceptable to Beneficiary, an insurance policy that:

a. covers all improvements for their full insurable value as determined when the policy is issued and renewed, unless Beneficiary approves a smaller amount in writing;
b. provides fire and extended coverage, including windstorm coverage;
c. protects Beneficiary with a standard mortgage clause; and
d. contains such other coverage as Beneficiary may reasonably require.
5. deliver the insurance policy to Beneficiary and deliver renewals to Beneficiary at least ten days before expiration;

  1. keep any buildings occupied as required by the insurance policy; and