QUESTION
Am I liable for my home after bankruptcy and why?
Asked on Jun 25th, 2015 on Bankruptcy - Washington
More details to this question:
I walked away from my house after bankruptcy. Am I still liable for the property? Do I need to still pay any property insurance? There has since been squatters living in the home and the police said that they cant get them to leave. They said I need to pay for an eviction process. Is this still my responsibility?
8 ANSWERS
If you listed the debt and you did NOT reaffirm the mortgage, you are fine. This is the mortgage company's responsibility. Good luck!
Answered on Jun 29th, 2015 at 2:19 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Consult with your bankruptcy lawyer to get the precise history of what happened, and what it means. Your obligation on the mortgage note has been discharged, but that does not automatically transfer the real estate to the mortgage-lender. You can offer to surrender the property to the lender, but if there may be junior lienholders, such as judgment creditors, out there, the mortgage lender may want to be sure to foreclose out those other interests as well. Why not notify the mortgage holder (by certified mail, with return receipt) that you have moved out, that you want them to take over the care of the property, and that there are squatters living in it and no doubt failing to maintain it.
Answered on Jun 26th, 2015 at 5:41 PM
Even though you may have signed a statement saying you INTENDED to surrender the property, that is not the same thing as taking the steps to actually surrender the property. This is a pretty common misconception and people often find out that they have heavy responsibilities for taxes, HOA fees, and liability to the squatters living on the premises who blow themselves up in their mini meth labs. Sounds like you need to pay attention to this nightmare with legal action before it turns into a catastrophe of massive proportions.
Answered on Jun 26th, 2015 at 10:48 AM
Leaving the home doesn't cut off your responsibility. That's why a short sale is always a good idea.
Answered on Jun 26th, 2015 at 10:09 AM
Deborah F. Bowinski
Even though the obligation to pay the mortgage loan was discharged, the property remains titled in your name. As the owner, you are responsible for maintaining the property, for paying taxes, and you could be liable for any injuries that are the result of negligence. Until the property is either sold or foreclosed upon you are still the owner of record.
Answered on Jun 26th, 2015 at 5:20 AM
Yes, unfortunately you are still liable for property until it has been conveyed to someone else, such as your mortgage lender, and the lenders have not moved very fast in many cases. You should continue to carry insurance on the property until it is out of your hands, because you could be held liable for anything that might happen on your property. Usually the most effective thing to do is contact your mortgage lender and offer to give them the deed in lieu of a foreclosure. Tell them about the squatters and let them evict them. Another option is to ask the city to condemn the property as a public nuisance. They probably have liens on the property anyway, so they could foreclose on those liens and force your mortgage lender to take action to protect their investment.
Answered on Jun 25th, 2015 at 7:06 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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As the owner, you are still liable on post bankruptcy expenses of the house. So you need to maintain insurance, keep the house from being a nuisance to the neighborhood, annual taxes.
Answered on Jun 25th, 2015 at 6:47 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Yes. It is still your responsibility until it is foreclosed. If someone gets hurt on the property, you are liable. You need insurance.
Answered on Jun 25th, 2015 at 6:46 PM