Foreclosure In Bankruptcy - My Obligations

Kathy K.

LoanSafe Member
Apr 28, 2015
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I included my share of my home in my bankruptcy that was discharged in 2014. I received notice that there is a hearing for my foreclosure next month. My bankruptcy lawyer informed me that I do not need to attend but that I should work with the commissioner that they assign (that is the last piece of advice he has given me). I am planning on vacating the home prior to the hearing and have no desire to deal with the home. I accepted it as lost when my ex-husband refused to cooperate with my mortgage modification.

I would like to know if I will be financial or legally liable for anything once I leave? Do I need to notify anyone (homeowners association, bank, etc)? Once I leave, I want to be DONE with this home. I am ready to close this chapter but I want is closed with nothing following me. Any advice would be appreciated.
 

despritfreya

LoanSafe Member
Sep 8, 2011
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I included. . . my home in my bankruptcy that was discharged in 2014. I received notice that there is a hearing for my foreclosure next month. . . I would like to know if I will be financial or legally liable for anything once I leave? Do I need to notify anyone (homeowners association, bank, etc)?
You have no obligation to "notify" anyone however, if you vacate it would be nice to notify the lender so that it can secure the property from vandalism or injury to a trespasser.

The only thing you are responsible for is the HOA until such time as title to the home transfers to either the investor who purchases it at foreclosure or the lender once the property is foreclosed (and any applicable redemption period expires - depending upon state law). If you want out sooner you need to discuss with the lender a deed in lieu of foreclosure.

Des.
 
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Moe Bedard

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I agree mostly with Des. But post-filing HOA fees are still owed and as long as the property is still in the yourname violations and fines are still the responsibility of the owner.

The homeowner's association /HOA can come after you for those fees later because you are responsible for the unpaid HOA dues. The US bankruptcy code says that all "fees or assessments that become due and payable ... to a membership ... or homeowners association" after filing for bankruptcy protection are exempt from discharge. However, many HOAs will not aggressively pursue collection against the homeowner.