Who is responsible for a house after bankruptcy? How? 13 Answers as of June 24, 2015

I have a client (I am a real estate agent) that filed for bankruptcy 2 years ago and the house is still in her name. Is she required to stay in the home or can she surrender the home to the bank? Who is responsible for the home?

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
She can remain in the house or walk away - the choice is her's. The house will not revert to the bank until a foreclosure sale occurs, unless she does a deed-in-lieu of foreclosure. What about a short sale? just an idea.
Answer Applies to: Colorado
Replied: 6/24/2015
Ronald K. Nims LLC | Ronald K. Nims
As long as the house remains in her name she's responsible for it. She's not required to remain living in the house but if she leaves the house vacant she would be liable for injuries to kids that played in the house or if the house started on fire and burned down a neighboring house. She's also liable under local laws to maintain the property and may be liable for the property taxes. She can't force the lender to take over the house, the lender could foreclose but isn't required to. Her best option is usually to attempt to do a short sale then both the lender and she is out of the picture.
Answer Applies to: Ohio
Replied: 6/23/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Until there is a foreclosure she is responsible for it. She can get tickets from code enforcement for things like not cutting the grass or disrepair. It is not uncommon for the lender to not foreclose to avoid that liability. On the other hand, until they foreclose she can live there without payment. This is why I never recommend a short sale.
Answer Applies to: California
Replied: 6/23/2015
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
It is her home till she either signs it over to someone or it is foreclosed. She is responsible to the home. She does not need to pay the mortgage or taxes, but if she has a HOA they can sue her personally, if they try you should have her sign it over to the HOA.
Answer Applies to: Florida
Replied: 6/23/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
She is not REQUIRED to stay in the home. Assuming she did not reaffirm her mortgage loan she is free to walk away from the property at any time or, she can sell it if there is sufficient value there to pay off the mortgage loan. D
Answer Applies to: Colorado
Replied: 6/22/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    The bank never took back the home so the house is still owned by the owner and that owner is responsible. Bank may do a deed in lieu of foreclosure but they normally require you to try to sell it on MLS first, so you should try to do as short sale first.
    Answer Applies to: New York
    Replied: 6/22/2015
    Stephens Gourley & Bywater | David A. Stephens
    The person or persons on the title are responsible. If the discharge has been entered they should be able to sell without hindrance from the court.
    Answer Applies to: Nevada
    Replied: 6/22/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Until the title changes, your client is responsible for the home, HOA dues, etc. The bankruptcy only affects the debt associated with the home at the time of filing.
    Answer Applies to: California
    Replied: 6/22/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    If she is still in the house, it is almost certainly because the mortgage-lender has given her permission to stay, or else does not care. Or else they have signed a reaffirmation, under which she keeps on making payments, and the lender takes no action to oust her. Generally, the person in residence in a property is responsible for at least basic maintenance. Does your interest in this issue arise from a desire to list the house? If so, why not contact the person in residence.
    Answer Applies to: Wisconsin
    Replied: 6/22/2015
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    We gave created a home preservation company for this exact problem to allocative the responsibility from the bankruptcy filer.
    Answer Applies to: New York
    Replied: 6/22/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Bankruptcy does not typically affect the title to a house. However, if the bankruptcy case is still open, the seller will need to obtain court permission to sell the property. The seller is responsible for the property as long as she owns the property the only thing the bankruptcy did was to eliminate her personal responsibility for paying the mortgage in the event of a foreclosure. The mortgage company still will get paid when the property is sold.
    Answer Applies to: Nevada
    Replied: 6/22/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    As long as the house is not foreclosed on she owns the home, but she is not responsible for the mortgage payments unless she has reaffirmed.
    Answer Applies to: Michigan
    Replied: 6/22/2015
    Danville Law Group | Scott Jordan
    Since the house is still in your clients name, the house still belongs to her and she can do with it as she pleases. She can sell it if she chooses. She should not abandon the property and continue paying any HOA, property taxes and insurance. If the bank has "lost" her mortgage, all the better.
    Answer Applies to: California
    Replied: 6/22/2015
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