Can we file a Deed in Lieu of Foreclosure after a bankruptcy? 19 Answers as of November 06, 2013

We filed bankruptcy and discharged of mortgage loan over 28 months ago. And we are still paying HOA dues on the property. Now the loan servicing company is saying they will not be foreclosing on the property any time soon. If we file a Deed in Lieu of Foreclosure, will that allow us to stop paying HOA dues?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Sorry for the delay in answering. Little medical issue. Bank will not take deed in lieu. You own it until they foreclose.
Answer Applies to: California
Replied: 11/6/2013
Stephens Gourley & Bywater | David A. Stephens
You can if the lender will accept it.
Answer Applies to: Nevada
Replied: 10/21/2013
Portland Bankruptcy Law Group
Portland Bankruptcy Law Group | Christopher J. Kane
Yes, you can sign a deed in lieu of foreclosure after your bankruptcy, and that will then relieve you of the responsibility of having to continue to pay HOA fees. attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
Answer Applies to: Oregon
Replied: 10/21/2013
A Fresh Start
A Fresh Start | Dorothy G Bunce
A deed in lieu of foreclosure will only get the HOA off your back if the lender agrees to accept it from you. The lender may have any number of reasons for not doing this. You may wish to attempt a short sale instead, but again, the lender can refuse and leave you holding the bag.
Answer Applies to: Nevada
Replied: 10/21/2013
William Bidwell, Attorney at Law | Bill Bidwell
It appears that your note obligation was discharged. The mortgage company has a secured interest in the property (mortgage). You can approach the mortgage company and ask if they will accept a deed in lieu of foreclosure; you do not file anything. The HOA dues are independent. The HOA will probably lien the property if you stop paying dues.
Answer Applies to: Michigan
Replied: 10/21/2013
    Law Offices of Linda Rose Fessler | Linda Fessler
    You are living in a house rent free. Just keep paying the dues and you can probably stay there for a few more years. If you sign the deed you may get kicked out.
    Answer Applies to: California
    Replied: 10/21/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You can't unilaterally do a deed in lieu. You must do that with the bank.
    Answer Applies to: Nevada
    Replied: 10/21/2013
    Scott Goldstein | Scott Goldstein
    You cannot just file a deed in lieu. You have to see if your lender will accept it. If they do not, you are stuck.
    Answer Applies to: New Jersey
    Replied: 10/21/2013
    Law Offices of David A. Tilem | Michael Avanesian
    My firm has a company setup that you can quitclaim to and avoid paying the fees. You should have done that 28 months ago. The fee is modest but I don't think we can discuss here.
    Answer Applies to: California
    Replied: 10/21/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    If your lender will accept a deed in lieu of foreclosure then it would be a good way to get the property out of your name. Some lenders will do that, others will not. If you cannot complete that transaction you could try to do a short sale of the property instead.
    Answer Applies to: Colorado
    Replied: 10/21/2013
    Law Office of Thomas C. Phipps | Thomas C Phipps
    You will have to negotiate with the mortgage company to see if they will agree to that arrangement.
    Answer Applies to: Missouri
    Replied: 10/21/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You can not file a deed in lieu. You have to make an application to the bank which can take 6 months or more to be approved and then they will send you a deed to sign the property back to them. The bank will require that you list it with a local realtor for sale first. So you may want to try a short sale before a deed in lieu.
    Answer Applies to: New York
    Replied: 10/21/2013
    Rhymer Law Firm
    Rhymer Law Firm | William Rhymer
    Yes you can in Georgia (a Quitclaim deed would do the same thing). If you do, technically, the mortgage company could object after the fact but they probably would not pay a lawyer to try to set if aside because it would just be more expense for them. I would suggest after recording that you furnish a copy to the HOA board and give them the name and address of where to send the future HOA dues notices. (You would still be responsible for any accumulated dues between the filing date of the Chapter 7 and the day the deed was recorded.)
    Answer Applies to: Georgia
    Replied: 10/21/2013
    Niketas & Clark, LLP
    Niketas & Clark, LLP | Alexia K. Niketas
    I would recommend either negotiating a short sale with the lender (and subsequently, with the HOA so that they will be paid at closing) or, perhaps better yet, negotiate with the HOA by offering to quitclaim the property to them, subject of course to the lender's lien, so that they might rent the property in an attempt to recoup some of their HOA fees and generate some revenue on the property until the lender moves forward with the foreclosure. This is assuming you no longer reside at the subject property. It's certainly worth a try.
    Answer Applies to: Georgia
    Replied: 10/21/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    You can give a Deed in Lieu but you can't force it on them.
    Answer Applies to: New York
    Replied: 10/21/2013
    CoverLaw
    CoverLaw | Jim Cover
    Are you still in the property? Did you list the HOA as a creditor? How did you treat the bank and HOA on statement of intention?
    Answer Applies to: California
    Replied: 10/21/2013
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    No. The mortgage company needs to accept a deed. You are stuck with the HOA dues. You can do a number of things. 1. Give the HOA a deed in lieu. 2. Find someone to rent the place for the HOA dues. 3. Continue to live there, pay the HOA dues and wait until the foreclosure. This sounds like the cheapest possible solution 4. Find someone to take title to the Condo. In Washington they will then have personal liability for the dues. Sell it subject to the first. This one really requires that you have competent counsel to guide you through the process.
    Answer Applies to: Washington
    Replied: 10/21/2013
    Law Offices of Patrick Edaburn | Patrick Edaburn
    You can do a DIL but you have to work with the bank, it is not a matter of filing something with the county but rather discussions with the lender.
    Answer Applies to: California
    Replied: 10/21/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    I would suggest you take the details of the situation to an attorney for review. There is a question under the circumstances, and it may be there is no need for you the be paying the HOA dues. I need the details.
    Answer Applies to: Michigan
    Replied: 10/21/2013
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