QUESTION
What is the worst case scenario if I found out that a house is still in my name after being under the impression that the bank took it 3 years ago?
Asked on Dec 11th, 2013 on Bankruptcy - Washington
More details to this question:
I filed for Bankruptcy in January of 2011 and kept my homeowners insurance and HOA current. It has been close to 3 years since I filed. I was already discharged. However, being new to all of this I just dropped the insurance on the home because I thought the bank had taken it over. To my surprise it is still in my name today and there was a pipe that broke and demolished my former house and the two neighboring town homes. I have no money because I filed for bankruptcy. What is the worst case scenario? HOA can fix the home for the most part, but I don't know what will happen to me.
4 ANSWERS
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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As long as the property is in your name, you are liable for any damage caused on or because of the property. You are also liable for all post-petition HOA assessments. The problem is that you are barred from filing a Chapter 7 until 2019, so any judgment obtained against you could be executed against your property, bank account and wages. You could file a Chapter 13, but that would require paying all of your disposable income for up to five years.
Answered on Dec 13th, 2013 at 8:41 PM
Deborah F. Bowinski
You may well have liability for the damage. As the owner of the property you could be the subject of a claim for repairs/damages caused by negligence if the HOA is not responsible. The covenants will tell you what is common property and what is yours. Have you maintained the HOA payments? If not, you are also probably responsible for all the HOA fees that have come due since your bankruptcy was filed.
Answered on Dec 13th, 2013 at 8:30 PM
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Unfortunately this is a result of the glut of homes in foreclosure. The banks are resuming foreclosure and homes are starting to foreclose again in a normal time frame but there are still a lot of homes out there just like yours. The unfortunate part is that your credit is not going to show the foreclosure until it actually happens, so despite the bankruptcy being three years old, you will still not be able to buy another home for several years.
Answered on Dec 13th, 2013 at 8:29 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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You still own it. You have the same responsibilities that you would have if you hadn't filed bankruptcy. If nothing else, move back in or rent it until someone forecloses.
Answered on Dec 13th, 2013 at 8:28 PM