What if you leave after Chapter7?WO.Re-affirm?

[billsbroke]

Once you have a discharged debt in Chapter 7 like us for example, we did not re-affirm our Morts...We get the bills each month that just say "this is a courtesy" " we will only exercise our rights aginst the property, not you personally" etc...

So does that mean you can litterly just walk out the door? do you have to tell them your leaving? are you still responsable for ins etc once you are personally discharged from owing any money personally? and what exactly happens to the loan terms? are they out the window also? I am Just curious because we want to stay here this is a what if question and I would like to know what my obligations would be? Thanks

[hamletsdead]

You have absolutely no further personal liability on the mortgages after your bankruptcy discharge -- you can walk whenever you want without paying a dime, and they can't come after you for anything. Unless, I suppose, you intentionally destroyed the property --- then I imagine a lawyer could come up with some creative way to sue you. Otherwise, though, it's just like a purchase money loan in CA -- i.e., non-recourse.

[AfraidOfBK]

what about homeowners insurance, property taxes, or homeowners association fees....are those IIB? How since new fees will accrue until the bank buys back the house, right?

[hamletsdead]

If you are delinquent on property taxes or homeowner's fees, include them in the bankruptcy. Although I do not profess to be a real estate expert, the property taxes go with the house, and if they aren't paid the county tax assessor liens the house rather than you personally, and if you don't pay them whoever buy the house (be it the bank in foreclosure or otherwise) is obliged to pay them. You cannot discharge property taxes in your chapter 7 (though you could get add'l time to pay them in a chap 13, and get a waiver of penalties and interest)

[chad9162]

Curious, is the foreclosure timeline the same or would they move more quickly?

[eddiep]

you are post bk right? Others have posted that you should continue to pay your homeowners insurance until the bank takes over possession because you could be held personally liable if they got injured on your property.

[chad9162]

Thanks I know about the insurance. Right now I'm current. I am still in BK, 341 end of the month.

I'm curious what would happen after discharge. If I stopped paying my mortgage (say in a year) the lender still has to go through foreclosure. So I'm curious if the timeline is faster since its a BK or the same. I'm not reaffirming my mortgage. From what I've read the foreclosure will not hurt my credit since the mortgage was already discharge and included in BK.

[monkatom]

my own experience is CHP 7 discharged May 08. Made payments up till December 08. First missed payment Jan 09. Received NOD April 30. So 4 missed payments. It was with National City who seem to be pretty fast as opposed to say Countrywide who takes awhile. So not sure if the BK sped up the process or not. I did not pay my taxes as I believe they will place a lien on house not me. I am still paying home owners as I believe if someone is injured on property I am still liable since my name is on the deed.

[Amy26]

With insurance.... I'm a little confused... I don't pay anything for insurance on my property. Its a condo development and there is a "master" policy that covers fire, water etc damage... who is paying that policy right now? Is that paid out of my mortgage or out of the HOA?

[chad9162]

probably from your HOA but I wonder if it covers liabilities, like if someone got hurt inside your condo....that's what he's talking about. If there was a fire or flood or what ever that destroyed the house it would matter. The Bank could not go after him for that loss because personal liability was discharge through BK

[Amy26]

I dunno... I've owned the house for 2 years and never had any additional insurance on it... nobody ever told me I needed to.

[monkatom]

I own a home so insurance is my responsibility. When I owned a Condo HOA paid insurance on the outside of my dwelling but I also had insurance on my personal belongings inside the home as well as the inside of the dwelling. Not sure if this pertains to all or not just what my experience was.

[moneytrouble]

The Homeowners Association insurance does not cover anything inside of your condo. Get condo insurance now, to cover yourself from injury in fire, and loss of belongings! It is a lot cheaper than home insurance. Also, if you move out, after 30 or 60 days, you need to get vacant home insurance. Most insurance companies standard policies do not cover vacant homes, and you need extra insurance.

[moneytrouble]

8 months no mortgage payment come July 1st, and still no foreclosure process started from Countrywide(Bank of America). I called them and explained the discharge, told them I no longer lived there, etc. They just stated they would make a note in my account and they had not started the foreclosure proceedings yet after 7 months of non payment. I live in a top 10 foreclosure state, so that may explain the delay. Early last year they started foreclosure proceedings and had a sheriff's sale date set on the 5th day of the 4 month of non payment. Times sure have changed quickly.

[denisejohn65]

I'm not reaffirming on my mort either. I have my hearing July 20th. I have a condo. I canceled my inside insurance, contents. I still pay the hoas and electric. I moved in with bf. I'm missing my first pymt this june 09. How long will it take for them to forclose? I suppose I will maybe get a discharge in Oct or Nov of 09. Please help.Please!!