QUESTION
Why are we still on the title if we surrendered the house in bankruptcy?
Asked on Nov 13th, 2012 on Bankruptcy - Florida
More details to this question:
We are being sued by the HOA but we did not just declare bankruptcy. We surrendered the house. Why does this not protect us against the HOA? The judge even confirmed the fact in bankruptcy court that we have surrendered the house.
9 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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No. You need to talk to your bankruptcy attorney. There is a difference between discharging debts and "surrendering" the property. You probably stated that your intention was to surrender the property, but you will still own it until the title is transferred to the lender or the property sold to a third party. Meanwhile, new homeowner's association dues may be your responsibility. Check the CC&Rs. I know this is confusing, but this is why you should hire competent bankruptcy counsel with you do something as important as filing for bankruptcy.
Answered on Nov 15th, 2012 at 5:12 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Question: Why are we still on the title if we surrendered the house in bankruptcy? Question Detail: We are being sued by the HOA but we did not just declare bankruptcy. We surrendered the house. Why does this not protect us against the HOA? The judge even confirmed the fact in bankruptcy court that we have surrendered the house. *- you should check with your lawyer regarding that; was the HOA named as a creditor in the bankruptcy petition?*
Answered on Nov 15th, 2012 at 4:26 AM
When you surrender property in a Chapter 7 bankruptcy you are only stating your preference of what will occur to the property. The home is not actually surrendered and you will remain on the title until the home is sold or the bank forecloses on it. The Chapter 7 discharge only effects your obligation to pay, not your ownership of the property. Until the home is sold or foreclosed, you are legally still the owner and are responsible for any HOA cost associated with the property.
Answered on Nov 14th, 2012 at 3:56 PM
Saying that you intend to surrender a house in bankruptcy isn't the same thing as actually doing it. Bankruptcy doesn't supercede state law which requires that you can only surrender real estate by having the lender agree to accept a deed in lieu of foreclosure (which most lenders will not accept), by an actual foreclosure, or by selling the property. You have fallen victim to a form of wishful thinking that the law is uncomplicated.
Answered on Nov 14th, 2012 at 3:47 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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By "surrendering" the house in bankruptcy, all you did was inform the world and HOA that you do not plan on keeping the house. It does not act as a conveyance of title. You are still the title holders until HOA completes its foreclosure and the redemption period expires. If you are being sued by the mortgage holder send them a letter telling them you filed bankruptcy along with a copy of the 341 notice and the schedule D where they should be listed as a creditor and a copy of your discharge if it has already been entered. If they are not listed as a creditor, you probably have a claim against your bankruptcy attorney for malpractice.
Answered on Nov 14th, 2012 at 11:08 AM
You may still be liable, depending on the actual terms of the Home Owner's Association documents. In addition, you can be personally liable for all the months you occupied the house AFTER you filed for bankruptcy, because bankruptcy does not discharge any obligations that arise after the date you file.
Answered on Nov 14th, 2012 at 11:07 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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It depends on your jurisdiction. In New Jersey, they an not come after you, If you have removed yourself from the property.
Answered on Nov 14th, 2012 at 9:38 AM
Daniel James Wilson
Post-petition HOA fees are a real problem. You remain liable until the title of your house changes hands. That means until the lender forecloses. Even though you "surrendered" the house it is still in your name until foreclosure. Lenders often take their sweet time foreclosing.
Answered on Nov 14th, 2012 at 9:19 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You surrendered the home to the mortgage company, not the hoa. The hoa fees were due after the filing. You will still be the owners until the bank gets a certificate of title.
Answered on Nov 14th, 2012 at 9:18 AM