Question on surrendering home in BK..

[veloguy]

We've been moved out for about two weeks now and the automatic stay was lifted at the end of January. Is there any benefit to us informing the mortgage company or their attorney that we've already surrendered the home? Will it help speed up the foreclosure process? Since we've already moved on, we'd like to get the home out of our name ASAP and be done with it. Any input would be appreciated.

[BassBoy]

You may want to inform the mortgage company that you have vacated the property. The lender may want to send someone to secure the property to make sure the house is not left open to vandals or looters.

There really isn't much benefit to informing the lender with regards to foreclosure timeline. The lender will have to wait it's turn on the court docket, if the foreclousre is judicial. Remember that until the home's title (the deed) has been given back to the lender, you should keep the homeowner's insurance current because you are legally responsible for the property until the home is no longer in your name.

[fred333]

Those are a good suggestions. I was not sure how that process worked either.

[cool33097]

I live in FL and am also surrending my property when filing bk. My lawyer actually told me that I am not responsible for HOA. I will be filing the house like any other creditor.

[busbis]

I too surrendered property in FL. I filed chp 13, but the mortgage company still has a claim for the past due amount (I was 2 months past due when filed), am I responsible for that? It totals an additional $5300.

[lrprn]

I too surrendered property in FL. I filed chp 13, but the mortgage company still has a claim for the past due amount (I was 2 months past due when filed), am I responsible for that? It totals an additional $5300.

Is your trustee paying off the arrears over the life of your plan? (Typically that's how making up arrears in Ch 13 happens.)

[busbis]

my plan just states the property being surrendered and the creditor is filed a claim for a total of $345,500 which is $340,000 principal balance and the remaining is the past due 2 payments and late fees. It's in foreclosure now, but I'm not sure if I am still responsible for the $5500 since the property is being surrendered.

[nazstar]

Remember that until the home's title (the deed) has been given back to the lender, you should keep the homeowner's insurance current because you are legally responsible for the property until the home is no longer in your name.

Our insurance was rolled into our monthly mortgage payment. Last year, our lovely insurance company announced that they would no longer cover homes in Florida because of the hurricanes, so we needed to scramble for another insurer. While we were doing that, the mortgage company sent us a letter stating that they received notice our insurance was being cancelled and were "kind enough" to secure insurance for us. They were going to go ahead and get this insurance unless they heard from us with an alternate insurance company.

We just received notice that the mortgage company is foreclosing and our lawyer says this should take 4-6 months. In the meantime, wouldn't the mortgage company step in and insure the house since its in their best interests, and tack on that amount to what we owe? This would all get dissolved in the bk filing. I don't think our insurance would even cover that house since we just left it. No one is living there.

[diviaruba]

Our insurance was rolled into our monthly mortgage payment. Last year, our lovely insurance company announced that they would no longer cover homes in Florida because of the hurricanes, so we needed to scramble for another insurer. While we were doing that, the mortgage company sent us a letter stating that they received notice our insurance was being cancelled and were "kind enough" to secure insurance for us. They were going to go ahead and get this insurance unless they heard from us with an alternate insurance company.

We just received notice that the mortgage company is foreclosing and our lawyer says this should take 4-6 months. In the meantime, wouldn't the mortgage company step in and insure the house since its in their best interests, and tack on that amount to what we owe? This would all get dissolved in the bk filing. I don't think our insurance would even cover that house since we just left it. No one is living there.

You might still have personal liability until your names are off the deed. Lots of Florida home have pools, for instance, and if a child got in and drowned, you would still have personal liability as the owner of record. You might inquire with an insurance broker as to whether you could just secure a liability policy on the vacant property and let the mortgage company carry the property casualty component.

[spectria]

You are probably going to find that most insurance companies will not insure "vacant" property. If you have a policy on the property, maintain it until the deed is transferred for your protection. Also secure the property to protect it from damage and others from injury (ie; the pool scenerio).