Surrendered home, HOA fees

[159515951]

We moved from Florida more than one year ago for job related reasons, and recently filed Chapter 13 to clean up debt and surrender our home in Florida to the bank. The bank seems to be in absolutely no hurry to foreclose, and they tell us that they will not accept it back through Quit Claim or any other mechanism.

In the meantime, we continue to receive water bills (they will not stop service, but only transfer it when there is a new owner), and continue to receive HOA assessments. My questions are:

1. Is there any way to compel the bank to follow through with foreclosure before this house turns into a moldy dump?

2. Are we on the hook to pay the HOA fees post- Chapter 13 filing?

We're very ready to be done with this, but the bank seems prepared to drag this out for several more years.

Help!

[HHM]

1. Sorry, No
2. Yes. Any HOA dues (and water bills) that come due AFTER the date of filing are your "personal" responsibility until the home eventually forecloses.

Sorry for the bad news, but this issue is very well settled and well known.

[keepsmiling]

Unfortunately, moldy dumps are not unusual. In case you haven't been following this story:http://www.bkforum.com/showthread.ph...WHY!!!!!/page2

A shame really, for everyone. Such a huge waste, and surely some creative solutions exist where everyone could benefit.

[159515951]

Thanks guys. That's what I was afraid of, but oh well.

[159515951]

So I've been thinking more about this, and I can't figure out why the bank wouldn't foreclose. The house is worth almost as much as the 1st mortgage, so they could immediately sell it and make $$ on the deal. Further, I'm in a 13, and the Plan doesn't allow any payment to my 1st and 2nd until they submit a claim, which can't happen until they foreclose and sell. I assume a long, dragged out foreclosure = little to no payment to 1st and 2nd.

There's zero good sense when it comes to banks, which scares me to no end.

[Bell30656]

The bank isn't foreclosing because they do not want to take the house and add it to their inventory of unsold properties. Once they take it they become responsible for it. Right now, you are still liable if the Jehovah's Witnesses break a leg on your porch. They are also not responsible for HOA fees, rather you are. If I was you, I'd either live in the house until they foreclose on it, let someone live in it until it is foreclosed upon or rent it out on a month to month. Then make them go through the foreclosure procedure.

[calhoun2011]

Wow I hope that does not happen in AZ - we are discharged and closed - have received a notice of default but that's it - received a letter "sorry you are not eligible for modification, then received a modification package to fill out and we have never even contacted Greentree or BOA. Our home insurance is up in September and paid HOA thru September. WE really want to get out of here and get on with our lives. Can we just hand them the keys and move on? How do we get out of this house?

[HHM]

"Handing them the keys" is known as a "deed in lieu" of foreclosure. You can try that route...but for whatever reason, very few banks will accept a DIL. And there is almost no chance of a DIL when there is also a 2nd mortgage or HELOC.

Unfortunately, getting rid of the house is not like getting rid of car, you cannot take the keys to the bank and simply drop them off, sorry.

For any other way to change title on a house except for foreclosure, the bank has to agree.

[159515951]

The HOA is now threatening foreclosure, which sounds like a great idea to me. That way THEY can rent the house and deal with BOA when they finally file for foreclosure in a few decades. Any drawbacks?

[bcohen]

The HOA is now threatening foreclosure, which sounds like a great idea to me. That way THEY can rent the house and deal with BOA when they finally file for foreclosure in a few decades. Any drawbacks?

No, and maybe you can offer to just sign the deed over to the HOA, in order to minimize the costs involved, so they can rent it out and put the money toward the dues which are piling up. It is possible that the bank will never foreclose, so if you can get your name off the deed this way, I would do it.

[berkeleygl]

We are dealing with a similar issue on a condo in Washington DC. We have been in default on the property for over 2 years now, surrendered it in our Ch. 13 a year ago, and still owe over $500/month in HOA dues. With our lawyer's consent/agreement, we started renting it out in May of this year so that we could pay off what we owed the HOA and stay current with them. Well, in July our bank (for the first mortgage) started to poke around again and is trying to talk us into looking for a short sale or going for a deed in lieu. Honestly, I don't have the time or the inclination to pursue a short sale, and I HIGHLY doubt the 2nd mortgage lender will agree to a deed in lieu. I wish they would just foreclose and be done with it. But I am certainly not going to go out of my way to help them at this point.

[159515951]

Honestly, I don't have the time or the inclination to pursue a short sale, and I HIGHLY doubt the 2nd mortgage lender will agree to a deed in lieu.

After going through a year of playing games with our 1st and 2nd trying to short sale with several wiling buyers, I can say without hesitation that it's NOT the way to go. Short sales with a 2nd mortgage are a PIA that I wouldn't wish on my worst enemy. Plus, the banks can and will change the rules with every offer. Just when we thought we found the right buyer, the 1st mortgage holder would inexplicably ask for $5k more, and the 2nd would tell us that they wouldn't take less than 50% of the loan balance. When we explained that they will receive NOTHING if we file bankruptcy, they seemed indifferent.

Good sense and banks don't mix.

[markinva]

I addition to HOA fees, I think that the owner is also liable for property taxes and home insurance, until the home is transferred to another owner. My attorney advises to not worry about it, but I do.

[HHM]

I addition to HOA fees, I think that the owner is also liable for property taxes and home insurance, until the home is transferred to another owner. My attorney advises to not worry about it, but I do.

Property taxes, yes, But only up to when the lender forecloses or the home is sold. Note, once the lender forecloses, the bank will need to pay the property taxes. It is simply that so long as the homeowner is homeowner of record, that is who the county will contact regarding any unpaid property tax.

Insurance is optional. But the homeowner is liable for anything the insurance would cover until the lender forecloses or the home is sold.