QUESTION
Am I still responsible for the house which the sale fell apart after bankruptcy?
Asked on Oct 16th, 2013 on Bankruptcy - California
More details to this question:
I filed for bankruptcy in 2009 and did not reaffirm my mortgage. The bankruptcy was discharged in Jan. 2010. We thought the property was sold (short sale) and moved out in July 2013. The sale fell apart at closing. Am I still responsible for the house?
9 ANSWERS
William M Stoddard
No you are not responsible. You abandoned the property. You filed the bankruptcy to give them notice. The only thing you can offer is to sign a deed in lieu of foreclosure.
Answered on Oct 22nd, 2013 at 7:01 AM
You have no responsibility to pay the mortgage. However, because you are still the property owner until something happens to change that (ie., foreclosure auction sale, short sale, deed in lieu of foreclosure, etc.), you should do a couple of things to protect yourself from potential unwanted headaches. First, you should keep liability insurance on the property, because if a neighborhood kid trips and falls on your property and gets injured, it is the property owner (ie. you) who will get sued. Second, the property should be maintained sufficiently to satisfy the requirements of the local municipality. If someone starts storing junk cars on the vacant property and the town issues a violation notice, it will be the property owner (ie., you) who will bear the legal costs of correcting the violation to the satisfaction of the town.
Answered on Oct 17th, 2013 at 4:44 PM
You are still responsible for the house to the extent that you owe ongoing taxes, HOA dues, municipal fines relating to maintenance, and you are liable should anyone be injured on the property. The bankruptcy eliminated your personal responsibility to pay the mortgage company and any obligations that arose before the bankruptcy was filed. Any obligation that comes up after you filed your bankruptcy is not covered by the discharge.
Answered on Oct 17th, 2013 at 10:38 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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You still own the house, so you are liable for any HOA/POA or Condo Association fees. The municipality or county in which the house is located can still hold you responsible for any code violation(s), but you are not responsible for any of the debts listed on your Bankruptcy Schedules for which you received a Discharge, such as mortgages or prebankruptcy HOA/POA/Condo fees.
Answered on Oct 17th, 2013 at 8:01 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Your liability for the mortgage was discharged in the bankruptcy. However, as long as you are on title, you have liability for anything that happens on the property (someone being injured, etc.) and you can be held liable for the upkeep of the property by your city or county.
Answered on Oct 17th, 2013 at 2:55 AM
2 Awards
No you are not responsible for the house. If there are HOA's you are responsible for those.
Answered on Oct 17th, 2013 at 2:55 AM
Deborah F. Bowinski
The mortgage loan was discharged. If there is a HOA you remain responsible for those fees as long as the property remains titled in your name. You also remain responsible for the maintenance and upkeep (utility bills still in your name, mowing lawn, shoveling snow, etc.) and remain liable for any injuries that might occur on the property due to negligence. A short sale or surrendering a deed in lieu of foreclosure would act to get the property out of your name more quickly than waiting for a foreclosure to take place.
Answered on Oct 17th, 2013 at 2:21 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Yes. If someone gets hurt on the property, you are the owner and you are responsible.
Answered on Oct 17th, 2013 at 2:20 AM
You are responsible for the house until the deed is out of your name.
Answered on Oct 17th, 2013 at 2:13 AM