Good News For Secured Lenders
The United States Bankruptcy Court for the District of New Jersey recently adopted a new General Order favorable to secured lenders. Effective January 3, 2005, secured creditors may send the following notices and take the following action without concern over violating the bankruptcy stay or bankruptcy discharge:
*Monthly statements and coupons: Secured creditors may continue to send regular monthly statements and coupons to borrowers who file for bankruptcy protection. Often times, borrowers stop making payments merely because they fail to receive a monthly statement or coupon.
*Escrow Statements: Mortgagees may send escrow statements disclosing the status of a borrower’s escrow account.
*Change in Monthly Payment: Secured creditors may change the amount of a bankrupt debtor’s monthly payment resulting from an increase in property taxes or insurance premiums, or an increase in the interest rate of a variable rate loan.
Important Note: Although a notice may be mailed to a borrower who filed for bankruptcy protection, the notice cannot demand payment. Secured lenders must be careful and make certain the notices are for informational purposes only and are not being mailed as a means of collecting a debt.
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We bought a burned down home in 2002 and spent 2 years restoring it. We did not live in it. We have been paying taxes on the home & property since we bought it.. The tax assessor just charged us all the back taxes and assessed us again. We are now burdeoned with an additional 20,000. property tax bill. My question- While building, shouldn’t we have been taxes only on the land value? Do we have any recourse for appeal or is it a waste of time? Lyn Gallo Moorestown NJ 08057
Ms. Gallo,
Generally, an assessor can make an assessment for a partially built structure, although most assessors wait until the building is complete. You may have received an “added assessment” which you have a right to appeal. I need additional information about your property before I can provide you with any advice. My telephone number is 609-895-7353.
Timothy Duggan