Insurance & Utilities on Departure? Help Needed

[DustinLH00]

All,

I need some guidance on what to do in this situation. I am moving out of my house on 10/9 and into an apartment. I did not reaffirm the mortgage, so I am walking away. I stopped paying after July's payment. The house is currently on the market with an agent as well. I had to secure the apartment immediately as they do a mortgage verification since my credit was bad.

So, since I am still the owner (foreclosure proceedings have not begun and BofA has yet to even contact me in any way) and since the house is listed on the market I am concerned about the electricity, gas, water and insurance on the home.

Obviously, I would cancel satellite, phone, garbage and all of that. But, the home will still need power for lights, gas for the upcoming cooler weather, etc. What do people do in these situations? I know its a little late now, but paying 2 sets of utility bills is gonna hurt me as I do not have a lot of money now (as we all know and feel).

Thanks for your advice!

[ccsjoe]

From reading your post, the agent is working on your behalf correct? Must be since you state foreclosure procedures have not even begun. In that case, it is in your best interest to maintain utilities in place to provide for maintaining status quo of the place, e.g. non-deterioration. Once foreclosure begins, you are most likely ok to turn off all utilities, but keep insurance until your name is off the title. Also, being a condo, you are responsible for HOA dues acquired post-filing and pre-foreclosure, so you are on the hookfor those as well until your name is off the title.

[SMinGA]

More than likely your insurance will drop you once they know its vacant. Your mortgage company will then put insurance on the property.

For the utilities - I don't know. I can see not wanting to pay them, not sure if there is any liability issues you'd be responsible for.

[keepinitreal]

Since you've already secured the apartment, you could always pay the apt. rent but remain in the house for free, assuming the house is nicer than the apartment.

Not ideal, but that way you won't have to pay the higher insurance premiums for an unoccupied house, or worry about it being broken into and having things stolen while it's still in your name, and you can move quickly once the title is transferred to the new owner.

[DustinLH00]

From reading your post, the agent is working on your behalf correct?

That is correct, I hired him about a month and a half ago to give an honest shot at selling the place. I have only had 2 people come to look at it in the past 45 days.

Also, being a condo, you are responsible for HOA dues acquired post-filing and pre-foreclosure, so you are on the hookfor those as well until your name is off the title.

Luckily I am not in a HOA, so I don't have to worry about this part. Thanks for your advice!

[DustinLH00]

More than likely your insurance will drop you once they know its vacant. Your mortgage company will then put insurance on the property.

I wasn't aware of this. I am getting my renter's insurance through the same company and told them to keep the insurance on the house until I know what happens with it and they never said a peep about if it doesn't sell yadayadayada...

For the utilities - I don't know. I can see not wanting to pay them, not sure if there is any liability issues you'd be responsible for.

I wonder the same thing. Yes the house and title are in my name, but the liability (the loan) is included in BK, so if I drop insurance and don't pay the utilities and the pipes freeze, the house floods and then vandals come in and tear the place up, I still have no loan that I am responsible for, so I thought it would more cut and dry, but I guess not?

[DustinLH00]

Since you've already secured the apartment, you could always pay the apt. rent but remain in the house for free, assuming the house is nicer than the apartment.

Thanks for the suggestion, however the house is 45 miles/1 way from work and school, where as the apartment is 11 miles/1 way. So, that is really not feasible for me.

[DustinLH00]

The homeowners insurance is paid through 4/2011. I figure by then I should be in foreclosure proceedings if it does not sell before then. I have basically written that money off and don't plan on getting any portion refunded to me so I should be good to go there.

I live in a small town, population 18,000, and the crime rates are low. I really don't anticipate there being any break-ins. I know that nobody anticipates this, but I just wanted to throw that out there.

Does anyone know if the gas company (Nicor), electric company (Ameren) or city have any type of reduced rates for non-occupancy? I realize the bills should drop with no occupancy regardless, however I am on budget plans so it would take months for that to reflect, etc...