Can lender refuse to accept payment of past due mortgage payments unless we pay all back property taxes? 4 Answers as of June 24, 2013

We have a hard money loan which is in default. There is a mortgage/deed of trust. Lender agreed to give extra month to bring current before filing final papers which would give us about 30 days before house is offered up for auction on court steps. We have enough to cure default but not the tax. Can he really refuse us paying him in full and proceed to foreclosure because of property taxes that haven't even become a lien?

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Stephens Gourley & Bywater | David A. Stephens
They probably can, although most of them will accept payments.
Answer Applies to: Nevada
Replied: 6/24/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, you are in violation of the mortgage if you have not paid the taxes
Answer Applies to: New York
Replied: 6/24/2013
Janke Legal Consulting | Bruce C. Janke
Your deed of trust probably says that if you are in default in any respect, the lender can refuse payments. You should read the deed of trust to see if default is defined as including failure to pay taxes. Are your taxes included in your monthly payment?
Answer Applies to: California
Replied: 6/23/2013
Frank Law Group, P.C.
Frank Law Group, P.C. | David E. Frank
In CA, yes. Failure to pay property taxes is normally a breach of the loan contract, which in turn forms the basis for foreclosure.
Answer Applies to: California
Replied: 6/23/2013
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