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What happens if you just pack up and leave your home?

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by mrange25, Jan 31, 2010.

  1. mrange25

    mrange25 LoanSafe Member

    Do you have to wait for the bank or something?

    Are there any worse reprocussions?

    We are basically just thinking about leaving, getting a u-haul to give away a lot of our stuff to charity, and then moving in with our parents.

    Is there anything inherently wrong in doing that? They can't crucify you on the courthouse steps or anything, can they?
  2. GottaMakeThisWork

    GottaMakeThisWork LoanSafe Member

    Naahh, nothing like that is going to happen. If you are determined to walk, then why not just stay there and save your money? Or you can at least take your time moving. Are you behind and if so how far?
  3. justdeb

    justdeb LoanSafe Member

    what will happen is the bank will deem it as you abandoned the property and will immediately come out and change the locks. Any items left in the house you will not be able to retrieve. The bank can hold you liable for anything that happens to the house (fire, break-ins, valdalism) and make you hold insurance on it, even though you abandoned it - or they can get a judgement against you for it when they foreclose.

    Best thing to do if you want to do that is tell the bank upfront that you want to pursue a Deed In Lieu of and see if they will do it. Many banks are not wanting to accept Deeds in Lieu or foreclose on the property as it costs them too much in upkeep, and are telling the homeowner "too bad, its yours". :cool:

    Your best bet is to consult with an attorney before you decide to just pack up and walk out so you can make a well informed decision of all the reprecussions of doing that. Most consults are free of charge or very minimal. Look for a lawyer referral service in your area and try to use a lawyer out of the system there, here in VA if you use one out of the referral service, it only costs you $35.00 for an hour I believe. MUCH less than what a reg. visit would cost ya! ;)

    I agree with the poster above - just stay there and take your time packing - you have quite a few months.
  4. babydeejordan

    babydeejordan LoanSafe Member

    First you should check the foreclosure laws in your state. Then decide if you want to play the banks game and apply for a loan modification. Most banks are trying to work with the borrower because they don't want the property back. If the banks won't work give you a loan modification ask if you can do a short sale....if so sell the house..a realtor will help you with that process...most banks won't just accept a deed in lieu until you try to at least sell the property yourself. The short sale can take 3-6 months...so you are buying time. If the property doesn't sell then go for the foreclosure. That will take another couple of months. Once the bank takes the property back in foreclosure they will have to evict you to gain possession..that will take a couple more months. So do what works for you!:D
  5. mrange25

    mrange25 LoanSafe Member

    Thank you for the replies. We are moving the hell out of where we are at because we can't afford iit anymore, plus we need to relocate. So it's a double reason.

    I understand it can take a lot of time for the house to foreclose and we are planning a transitional move over the next four or five months to our new place.

    As far as a short sale is concerned, it is not something we are really looking into. I've looked up the differences between a short sale and foreclosure, and the only real difference I see between the two is that a short sale is little bit less of a hit on your credit and it seems to benefit the lender so they don't have vacant properties laying around.

    Other than that is looks like we are going to walk. We might just declare bankrupty and get the whole thing over with.
  6. SciGuy

    SciGuy LoanSafe Member

    I abandoned my condo three months ago now. I called the banks telling them I was abandoning it, and just to make sure they got the message, sent them a letter via certified mail (with my keys) saying the same thing. They made some noise about "changing the locks" and charging me for "winterizing the property", but guess what? They haven't done either yet. I drive by to check once every few weeks just to see, but literally nothing has changed since I moved out.

    I want them to foreclose right now, but they are dragging their feet because they really have too much devalued property as it is right now. I don't have insurance on the abandoned property, but as I've mailed them the keys and told them I was giving up all legal rights to the property I don't see how they can hold me accountable for anything that happens. They need to foreclose and get it over with but I'm not holding my breath for that to happen anytime soon.
  7. Hollow

    Hollow LoanSafe Member

    Well you are incorrect. You are legally responsible for the property until title changes name's. So if someone breaks in and hurts themselves your liable.
  8. caldwell02

    caldwell02 LoanSafe Member

    I do believe hollow is right here. You are still the owner of your property even if you walk away till the title changes. I would not walk away. I would pursue the deed in lieu - get yourself out of being responsible for the property before you leave it. And I would check the foreclosure laws in your state. you are playing with fire if you just abandon without checking this stuff out. Good luck.
  9. LostVegas

    LostVegas LoanSafe Member

    You can either keep your homeowners insurance, or purchase vacant home insurance. I've kept mine for liability reasons. The last thing you need is a squatter destroying the place or a burglar that slips and sues you.

    Although you've probably mailed the keys and turned off utilities, I'd keep a set. Until they legally take possesion and actually foreclose or post no tresspass notes, you can legally enter to check on things.

    Does anyone know what happens when the "substitution" of the title is filed? My substitution was filed back in August with the filing of the "breach and election to sell". The title now is under the name of the Trustee (my banks lawyers filed it) and I wasn't sure if they now are liable or if I still maintain title?
  10. DesertMe

    DesertMe LoanSafe Member

    My Substitution of Trustee was done months ago and still no trust sale scheduled. It's just a legal move so they can proceed with the foreclosure, but here in Southern California, it's now taking upwards of 2 YEARS to get a house sold..BofA has not changed my locks (Vacant), put up a sign, nothing except for a couple "drive-by" pictures..To the OP: Take your time, consider a BK to include your mortgages for deficiency and tax purposes...and don't feel bad, business makes decisions like this all the time..What's "good for the goose"..yadayada..
  11. timmywit

    timmywit LoanSafe Member

    yep you need to have it insured as you leave-why not stay in it till they kick you out, 6 months or so rent free. I would advise for you to contact a attorney for an answer, we are looking at walking away and chatting with an attorney next week, we are most likely going to declare bankruptcy to prevent a defency judgement.
  12. darlyj

    darlyj LoanSafe Member

    Agreed - you don't want your backside hanging out in the wind with nothing to cover it, should some kind of damage occur to the house. ;) A "No Trespassing" sign might also be a good idea from a liability aspect, depending upon the laws in your area. Also, if you have a HOA then you will probably want to continue paying those dues - check your paperwork to be sure, but in many cases they can still come after you even after the house has been auctioned off. Good luck to you, and prepare yourself for this to take awhile. We are now 8 or 9 months behind and have not even received a letter stating that our case has been referred to an attorney to start foreclosure proceedings....although with Chase You to Insanity, who knows. :rolleyes:
  13. SciGuy

    SciGuy LoanSafe Member

    I understand the liability issues, but it's a calculated risk. Vacant home insurance is neither cheap nor easy to get, and if I have to pay that plus my HOA dues, I'm looking at throwing a lot of money into the property. There are plenty of foreclosed condos in my old complex and they are selling very slowly- I am honestly not expecting the bank to foreclose for 1-2 years unless I get lucky.

    Instead of shelling out about 3k per year on insurance + HOA dues while the bank takes its sweet time to foreclose, I just decided to not deal with it. It's not a house, so there's no lawns/etc to maintain, and there's no risk of exploding pipes considering it's Phoenix.

    If squatters break in and trash the place, well, the worst case scenario is the bank comes after me with a deficiency judgment because the home got trashed while my name was on the title. If a judge upholds it, I fall into bankruptcy because my current assets are nowhere even remotely close to the value of the home. (And under AZ laws almost all of my property is exempt from ch. 7 bankruptcy which I qualify for due to my lower-than-median income)

    It's still a bad situation to be in, but financially, it actually makes more sense for me to avoid having insurance on the place and hope nothing happens. I researched long and hard before making this decision, and as far as I am concerned I am making the best out of a bad situation.
  14. Hollow

    Hollow LoanSafe Member

    Sounds like you already have you mind made up on what you will be doing.
  15. msm859

    msm859 LoanSafe Member

    If you are leaving and worried about liability why don't you simply sign a quit claim deed over to the bank -- then you are no longer the owner.
  16. Texan

    Texan LoanSafe Member

    Well that should be interesting in my case. They tried to foreclose on me last years using that "bogus" MERS entity. I fought it and the foreclosure was dismissed, therefore, I don't think my servicer actually has the DOT and cannot legally foreclose. That is what I am inferring from my experience. So if I walk I don't know what they can really do. Until they prove they are the actual owners of my mortgage, they and I are stuck in limbo. I really just don't give a crap anymore.:eek:
  17. Texan

    Texan LoanSafe Member

    msm, how does a quit claim deed work? Hadn't heard about that? As I am planning to walk and leave town, that sounds like it might be an option for me. Part of me doesn't care about any liability as I am real PO'd right now, but I would prefer to release myself from any liability.
  18. msm859

    msm859 LoanSafe Member

    simple. a quit claim deed simply says any interest you have in the property is being granted to whomever you name. you would have it signed in front of a notary and deliver it to the bank.
  19. SciGuy

    SciGuy LoanSafe Member

    I've heard of a quit claim deed, but doesn't the lender have to officially accept it from me for it to be valid? Or can I just get one drawn up, sign it, notarize it, and wash my hands of the property? That seems too easy, but perhaps it cannot hurt to try.
  20. msm859

    msm859 LoanSafe Member

    You still have to "deliver" the deed to them. You could send it to them certified mail.

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