Some people may be going through hardship and have taken the option of doing forbearance on their home. Many may have their mortgage payment include their taxes, insurance and HOA(Home Owners Association).
1. By not paying property taxes the city will be able to send that property to a tax deed sale. The foreclosure process won’t start till a year and one day after whoever bought that tax deed at the auction. Foreclosure can be avoid by paying the delinquent taxes but there will be fees and interest up to 20% that will be added depending on the state.
2. If someone lives in a community that has a HOA by not paying those fees they may file a foreclosure on that property as well. Some states don’t allow HOA to be superior to the mortgage for example Florida.
3. With hurricane season and all the natural disaster happen all over America by being in forbearance your insurance is also not being paid. Now they still may be covered based on when and how their insurance is paid. If the someone chooses to do forbearance for 12 months make sure to contact the insurance company to make sure insurance is current and the home still has coverage.
To avoid this I recommend putting money aside to pay your taxes, insurance and HOA at the end to the year or whenever it’s due. Some HOAs require you pay quarterly and if not paid then lates fee may apply which can add up quickly. Insurance payment is due depending on the month the property was purchased or when the policy was changed. It’s the individual responsibility to make sure that these are current and being paid regardless of having a Escrow Company. They make mistakes as well.