After Discharge-Abandon or Wait for Foreclosure

[StartingOver08]

Once the property is surrendered in BK, you do not owe for the deficiency. The deed in lieu (DIL) does not change that fact, but check with your BK attorney.

Usually the issue is this: the banks are not accepting DIL because they do not want to take on the additional expenses until they absolutely have to, that is why the foreclosure process has slowed to a crawl.

[bkfdrusa]

Just refile your Statement of Intentions to "surrender" for the house.

Then do as OhioFiler states, make arrangements to give the house back 'deed in lieu' so you are not responsible for the debt or expenses.

At this stage refile, I am 50 days from discharge. I heard that if you do a deed in lieu then you are responsible for taxes later for the amount forgiven by the bank.

[StartingOver08]

Just refile your Statement of Intentions to "surrender" for the house.

Then do as OhioFiler states, make arrangements to give the house back 'deed in lieu' so you are not responsible for the debt or expenses.

[bkfdrusa]

Did you elect Surrender as your choice on your Form 8B? I'd call today and make arrangements if they've filed for relief of stay. If they haven't call them the day you discharge.

No, I said I will be refffirming the loan. Now, I do not want to do that.
I will inform the bank that I am walking out the day I am leaving the country.
Also,Do you want me to continue the insurance until it is sold in foreclosure?.
Even if the bank takes insurance, still am I responsible for snow cleaning, HOA dues etc..?. If I add up all these three expenses, it comes to 1300. Insurance for 6 months 600, Snow cleaning 600, HOA dues 100. I am trying to see what can I save here?. Also, How do I know when to cancel insurance?. How will I know that the house title got transferred also?. Will I be knowing If my bank takes insurance on my house?.

[OhioFiler]

I am expecting my discharge around 9/7/2009. planning to move out in 1st week of Oct. Hopefully I will get discharge withoput any problem. When do you think is best time to call the bank and tell them that i will be abandoning the property?. Right after I get discharge?. Then the bank hasonly 25 days to get the deed transferred. I would like to tell the bank asap because that saves me money for HOA, Snow Cleaning, Insurance etc..

Did you elect Surrender as your choice on your Form 8B? I'd call today and make arrangements if they've filed for relief of stay. If they haven't call them the day you discharge.

[bkfdrusa]

You should immediately notify the loan servicer that you abandoned the property. You may be able to transfer the deed to them and avoid the foreclosure process.

It is in your best interest to remove liabilty from yourself regarding the property asap and also in your neighbor's best interest to get the bank moving on selling the property.

Call the lender's bankruptcy department and tell them you abandoned the property.

I am expecting my discharge around 9/7/2009. planning to move out in 1st week of Oct. Hopefully I will get discharge withoput any problem. When do you think is best time to call the bank and tell them that i will be abandoning the property?. Right after I get discharge?. Then the bank hasonly 25 days to get the deed transferred. I would like to tell the bank asap because that saves me money for HOA, Snow Cleaning, Insurance etc..

[bkfdrusa]

Not if you're discharged.

I am expecting my discharge around 9/7/2009. planning to move out in 1st week of Oct. Hopefully I will get discharge withoput any problem. When do you think is best time to call the bank and tell them that i will be abandoning the property?. Right after I get discharge?. Then the bank hasonly 25 days to get the deed transferred. I would like to tell the bank asap because that saves me money for HOA, Snow Cleaning, Insurance etc..

[OhioFiler]

And I am not responsible for any tax liablilites like a short sale or deed in lieu foreclosure?.

Not if you're discharged.

[bkfdrusa]

The lender becomes the owner of the property and all associated expenses.

And I am not responsible for any tax liablilites like a short sale or deed in lieu foreclosure?.

[OhioFiler]

If you transfer the deed still are you responsilbe for insurance, snow cleaning, hoa fees and no issues later?.

The lender becomes the owner of the property and all associated expenses.

[bkfdrusa]

You should immediately notify the loan servicer that you abandoned the property. You may be able to transfer the deed to them and avoid the foreclosure process.

It is in your best interest to remove liabilty from yourself regarding the property asap and also in your neighbor's best interest to get the bank moving on selling the property.

Call the lender's bankruptcy department and tell them you abandoned the property.

If you transfer the deed still are you responsilbe for insurance, snow cleaning, hoa fees and no issues later?.

[bkfdrusa]

I am in 60 day club right now. I stopped paying for my house in May 2009 and filed BK on 6/4/2009 and included the house in BK chapter 7. So, I am default as of 6/4/2009.
My last payment was on 4/1/2009. I still did not get any notices from my bank but would like to walk away end of sep 2009. So, do not know when to inform the bank, being responsible for insurance, snow cleaning, HOA fees etc..

[bkmaggster]

Did they bill you for insurance?. but if you had already filed BK and get discharged what do they do?.

No, we filed BK just afterwards. It wouldn't work if you filed BK first.

[OhioFiler]

You should immediately notify the loan servicer that you abandoned the property. You may be able to transfer the deed to them and avoid the foreclosure process.

It is in your best interest to remove liabilty from yourself regarding the property asap and also in your neighbor's best interest to get the bank moving on selling the property.

Call the lender's bankruptcy department and tell them you abandoned the property.

[bkfdrusa]

In our case, once the bank found out we abandoned the house, they put their own policy on the house and billed us for it. We included that in the BK as well.

Did they bill you for insurance?. but if you had already filed BK and get discharged what do they do?.