Who is responsible for home insurance and property taxes after discharge?

[PushRestart]

Great advice, yet more stuff I did not know about BKs....

[dontburnthep]

Get a renter's policy for your possessions and personal liability.

Wow, another thing our attorney told us incorrectly. Renters insurance? Really? We're still paying our regular home owners.

[debee]

As dontburnthep points out, you are still the owner until the foreclosure. However, property taxes always attach to the land. You're not personally liable for them. The county will get a lien on the property. The bank has to pay them first from any sale proceeds. Not your problem.

You don't need to insure the building. If it burns down, the bank will be able to sell the charred remains and the sizzled lot. If they can't get enough money from the sale to pay off your loan, they can't pursue you for the deficiency because your personally liability will have been discharged in the bankruptcy. If they don't insure their investment, that's their own stupidity. Not your problem.

Get a renter's policy for your possessions and personal liability.

eta: If you have HOA, pay that until foreclosure because your personal liability remains post-bk.

[dontburnthep]

You are responsible for both while the deed is in your name. The BK takes care of what you owe, but doesn't change the legal ownership of the property until foreclosure. Some banks do get their own insurance. Some banks also bring property taxes current to get a clean title to re-sell the property. YMMV.

[capamando]

Hello to all,

In my previous post I mentioned that we finally had our 341...now we wait for the discharge and any issues that the trustee may come up with. Assuming that all goes well and we get our discharge sometime in April the question left unanswered for us (will ask our lawyer next week) is who is responsible for home insurance and the property taxes that are part of our mortgage payments. Since we are in default and did not reaffirm our mortgages(1st & 2nd)...I believe that the bank will get their own home insurance ...not sure about property taxes. If we continue to reside on our home until foreclosure, what if someone gets injured on the property or the house gets damaged by fire or a hurricane....are we liable?

We would appreciate a clarification..


Thanks