What if you are walking and something is broken?

[cactus77727]

I'm walking away in AZ and have some issues with my home. First, when I bought the home, the covered patio roof was in bad shape and leaks. I knew this, but never got around to reroofing it. Also, I had been reflooring the whole house, but the three bedrooms and one bathroom are NOT finished. They are all just bare concrete. I was going to finish last summer, but I lost my job. Finally the hot water pipes failed last week. There is a huge leak somewhere under the slab.

I don't want them to think I committed waste or 'foreclosure rage' or did any intentional damage. It's fairly obvious I didn't sabotage the roof and or the plunbing leak (it's underground so I couldn't have). The missing flooring concerns me the most.
1) Should I disclose any of this too the lenders at any point in the foreclosure process? Or just keep my mouth shut?
2) Once they foreclose, do you think they will come after me for the missing flooring or anything?
3) When I move out, I was going to leave a note on the water heater, saying not to turn the hot water on and why. Should I?

[The Professor]

What I might do with that pipe leak is to file a claim with your insurance company. Not that they will pay, but at least it is proof that you were acting in good faith as evidenced by your action in filing a claim. As to the roof, I wouldn't worry and if asked, a simply explanation will I'm sure satisfy the issue on the flooring.

Daniel

[cactus77727]

I called my insurance agent. He told me that the pipe leak damage is covered under my home owners policy. I have a $500 deductable. They would cover the reflooring and any damage, mold etc. Interestingly, the cost to repair the pipe itself is NOT covered, just the damage caused by the leak. There really is no damage. I've got all tile and concrete floors.

They will not cover alternative solutions either. I told my agent, if I were to stay, I'd reroute new piping anyway, and abandon the old pipe. (It's obvisously defective. And he reiterated what someone else mentioned: that it is likely another leak will soon happen in the defective piping.) Even though a pipe reroute would be cheeper, the insurance still would not cover that remedy. I can't even afford the $500 deductable + pipe repair another $300-400+. What else am I supposed to do? So check mate, I guess I'll just have to leave it and hope the lenders don't sue me for waste.

[The Professor]

The sort of "waste" behavior you would be liable for is sort of vandalism behavior. The pipe breaking can only be credited to an act of God (or the negligence of one of God's children). So don't worry about it.

Daniel