QUESTION
Can we file a Deed in Lieu of Foreclosure after a bankruptcy?
Asked on Oct 18th, 2013 on Bankruptcy - Michigan
More details to this question:
We filed bankruptcy and discharged of mortgage loan over 28 months ago. And we are still paying HOA dues on the property. Now the loan servicing company is saying they will not be foreclosing on the property any time soon. If we file a Deed in Lieu of Foreclosure, will that allow us to stop paying HOA dues?
12 ANSWERS
Yes, you can sign a deed in lieu of foreclosure after your bankruptcy, and that will then relieve you of the responsibility of having to continue to pay HOA fees. attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
Answered on Oct 21st, 2013 at 1:43 PM
A deed in lieu of foreclosure will only get the HOA off your back if the lender agrees to accept it from you. The lender may have any number of reasons for not doing this. You may wish to attempt a short sale instead, but again, the lender can refuse and leave you holding the bag.
Answered on Oct 21st, 2013 at 1:16 PM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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My firm has a company setup that you can quitclaim to and avoid paying the fees. You should have done that 28 months ago. The fee is modest but I don't think we can discuss here.
Answered on Oct 21st, 2013 at 3:49 AM
Are you still in the property? Did you list the HOA as a creditor? How did you treat the bank and HOA on statement of intention?
Answered on Oct 21st, 2013 at 3:26 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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No. The mortgage company needs to accept a deed. You are stuck with the HOA dues. You can do a number of things. 1. Give the HOA a deed in lieu. 2. Find someone to rent the place for the HOA dues. 3. Continue to live there, pay the HOA dues and wait until the foreclosure. This sounds like the cheapest possible solution 4. Find someone to take title to the Condo. In Washington they will then have personal liability for the dues. Sell it subject to the first. This one really requires that you have competent counsel to guide you through the process.
Answered on Oct 21st, 2013 at 3:11 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would suggest you take the details of the situation to an attorney for review. There is a question under the circumstances, and it may be there is no need for you the be paying the HOA dues. I need the details.
Answered on Oct 21st, 2013 at 3:10 AM
Deborah F. Bowinski
If your lender will accept a deed in lieu of foreclosure then it would be a good way to get the property out of your name. Some lenders will do that, others will not. If you cannot complete that transaction you could try to do a short sale of the property instead.
Answered on Oct 21st, 2013 at 3:10 AM
William Rhymer
Yes you can in Georgia (a Quitclaim deed would do the same thing). If you do, technically, the mortgage company could object after the fact but they probably would not pay a lawyer to try to set if aside because it would just be more expense for them. I would suggest after recording that you furnish a copy to the HOA board and give them the name and address of where to send the future HOA dues notices. (You would still be responsible for any accumulated dues between the filing date of the Chapter 7 and the day the deed was recorded.)
Answered on Oct 21st, 2013 at 3:09 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You will have to negotiate with the mortgage company to see if they will agree to that arrangement.
Answered on Oct 21st, 2013 at 3:09 AM
Litigation Attorney serving Stockton, CA
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Patrick Jay Edaburn
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You can do a DIL but you have to work with the bank, it is not a matter of filing something with the county but rather discussions with the lender.
Answered on Oct 21st, 2013 at 3:06 AM
2 Awards
You can't unilaterally do a deed in lieu. You must do that with the bank.
Answered on Oct 21st, 2013 at 2:51 AM
It appears that your note obligation was discharged. The mortgage company has a secured interest in the property (mortgage). You can approach the mortgage company and ask if they will accept a deed in lieu of foreclosure; you do not file anything. The HOA dues are independent. The HOA will probably lien the property if you stop paying dues.
Answered on Oct 21st, 2013 at 2:44 AM