QUESTION
What are our legal obligations if we move out of the house after not reaffirming the mortgage in bankruptcy?
Asked on Sep 26th, 2014 on Bankruptcy - Virginia
More details to this question:
I know we are released of the financial responsibility for the mortgage but how about the ownership part of the equation?
6 ANSWERS
Derek W. Freeman
Although you stated your intention to surrender the house, title will not actually transfer until the foreclosure takes place. So until that time, you will be responsible for any costs associated with owning real estate.
Answered on Oct 07th, 2014 at 1:16 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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As long as you are on title, you have liability for what takes place on the property and for any HOA assessments. You should continue to pay your liability insurance and your HOA assessments (post-filing).
Answered on Sep 30th, 2014 at 10:45 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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As long as your name is on the deed, you have ownership liability for the house. This includes maintaining the property, paying the taxes and liability if someone is injured due to the vacant house (usually this would be kids playing in it). If possible you should turn it over to the bank. that would avoid having a foreclosure on your credit record and end you liability.
Answered on Sep 30th, 2014 at 9:05 AM
Title will vest in the mortgage company once they do the foreclosure, and NOT sooner.
Answered on Sep 29th, 2014 at 12:25 PM
Filing bankruptcy does not affect the title to real estate unless and until either your or the trustee sells the real estate or title is taken under the foreclosure process. As long as your name is on the title, you are responsible for paying the ongoing expense of the real estate, including taxes, required municipal maintenance, HOA dues. And you are liable if anyone should be injured on your property. So it is important to deal with this issue sooner rather than later. I have clients complain about problems of abandoned property nearly every week.
Answered on Sep 29th, 2014 at 11:08 AM
You still own the house.
Answered on Sep 29th, 2014 at 8:47 AM