What will happen when we move out of our house on mortgage after bankruptcy? 14 Answers as of March 06, 2014

We filed bankruptcy and the house was included. We have been living in the house and making payments. Now I want to know what will happen when we move out. Am I responsible for taxes and insurance at that time? Also can it hurt my credit score more than it already has?

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Law Office of Marlin Branstetter
Law Office of Marlin Branstetter | Marlin Branstetter
If you move out you will be responsible for taxes and insurance on the house until you are no longer on title. Also it is your responsibility to maintain the property during that time. If you don't you could be liable for any fines the city may impose if the proper falls into disrepair. You should contact the bank and see if they will take a deed in lieu of foreclosure. You don't state how long it has been since you filed BK but a foreclosure could damage your credit score if the bankruptcy was some time ago and you have started to rebuild your credit. If the BK is recent it will probably not harm your score. Also the deed in lieu of foreclosure would prevent a foreclosure from appearing on your credit report.
Answer Applies to: California
Replied: 3/6/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
You have no responsibility or liability. Take care of the property and do not needlessly damage the house. You will be fine.
Answer Applies to: Colorado
Replied: 3/6/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you did not reaffirm the mortgage in the bankruptcy, it can not show any payments on your credit after filing. You also are no longer personally liable for the note on the house after getting your bankruptcy discharge. If you stop making payment, then the mortgage company will pay the taxes and insurance and will start a foreclosure proceeding. You may want to consider a short sale to get rid of the property quickly.
Answer Applies to: New York
Replied: 3/6/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
As long as you are a homeowner, you are responsible for the expenses relating to the house. The bankruptcy only discharged your mortgage debt, not your taxes & other liability as a homeowner.
Answer Applies to: Nevada
Replied: 3/6/2014
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
Assuming that you did NOT reaffirm your mortgage loan, you can walk away from the property without any further obligation on your mortgage. HOWEVER, until the property is either sold or foreclosed upon you remain the owner with all that goes along with it. As the owner you will remain responsible for utilities that are used/billed for the property, for the maintenance and upkeep of the home to comply with local code requirements, for any negligence claims if someone is injured on the property because the sidewalk was not cleared of snow or ice, etc. Also, if you have a homeowners' association you remain responsible for all of their fees up until the time that title to the property is transferred out of your name. You are free to try to sell the home if you think you can or, to try to negotiate with your lender to accept the deed back from you in lieu of going through a foreclosure.
Answer Applies to: Colorado
Replied: 3/6/2014
    Edward L. Armstrong, P.C. | Edward L. Armstrong
    If you are still living in your house after a bankruptcy (Chapter 7??) you must have reaffirmed the debt to the bank. If you did not reaffirm you may still have some problems and I would consult your bankruptcy attorney.
    Answer Applies to: Missouri
    Replied: 3/6/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Stay there until you the mortgage is foreclosed. It will not hurt your credit score more. You need not pay the taxes, but do pay the insurance. That protects you in case of a dog bit, slip and fall, and so on.
    Answer Applies to: California
    Replied: 3/6/2014
    Danville Law Group | Scott Jordan
    Are you intending to surrender your house to your bank? Or do you want to keep your house? If surrendering, you should live in the house for so long as it takes the bank to foreclose.
    Answer Applies to: California
    Replied: 3/6/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    The bankruptcy has no effect on the mortgage except in the unlikely event you might have personal liability on that debt, which won't be the case now unless you re-affirmed the mortgage in the BK. If you are moving out, the taxes will be secured by the property. You may wish to at least continue liability coverage on the property until the foreclosure occurs. Yes, your credit can and will be hurt more by a foreclosure. In the lending and credit world it is far worse.
    Answer Applies to: California
    Replied: 3/6/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You are not responsible for the taxes and insurance. That will be paid upon sale of the property. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
    Answer Applies to: Nevada
    Replied: 3/6/2014
    Stacy Joel Safion, Esq.
    Stacy Joel Safion, Esq. | Stacy Joel Safion
    Yes, yes and yes again.
    Answer Applies to: California
    Replied: 3/6/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    When you received your discharge, your liability for the loan was cancelled. However, the lender still has a lien on the property and can (and will most likely) foreclose. Until the property is no longer titled in your name (until the foreclosure process has been completed), you are liable for anything that happens on the property. I always advise my clients to continue to maintain liability insurance on the property and, if there is a homeowner's association, to continue to pay the HOA assessments. If you are in California, you have no personal liability for property taxes. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Furthermore, the answer is based on California law and their application to bankruptcy law in California. Additional information could change the context of the question and materially change the answer.
    Answer Applies to: California
    Replied: 3/6/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    You will be responsible for taxes and insurance until title passes to another party. If you vacate the premises you need to contact the lender so they may secure the property. Foreclosure will be a second hit for your credit potentially so you may want to explore your options of a short sale or deed in lieu of foreclosure. Both options are better than foreclosure and in certain circumstances you may be entitled to money from the lender for participating in the process.
    Answer Applies to: Indiana
    Replied: 3/6/2014
    Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
    As long as the property is in your name, you are legally liable for taxes. You are also legally liable if anyone is injured as a result of the condition of the property, so in that sense you are "responsible" for insurance.
    Answer Applies to: Illinois
    Replied: 3/6/2014
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