Hoa Dues On Bk Surrendered Property

[busbis]

I am so glad I found this site....I have learned so much.

But my question, I am planning on filing bankruptcy in the next few weeks and surrendering 2 properties that are FL condos. I will be filing a chp 13 planning to do 100% pay back to my creditors. My question is, I am current on all my payments to my creditors and to the mortgage companies, however I have stopped paying my HOA dues and any assessments for the last 60 days. What happens to these fees if the property is going to be surrendered?

[B12]

They become a lien on the property. The new owner buying the house at foreclosure has to deal with it. Keep paying the homeowner's insurance though and keep up the fire policy if the other house is an investment property.

Aren't the HOA dues and insurance premiums in FL horrible???

[SinkingFast]

Generally speaking, back taxes, HOA dues, any necessary repairs and such become the responsibility of whoever buys the home at the Foreclosure Sale. Most times, that's the Lender holding the note on the property.

B12 makes a good point about the insurance. All the attnys here asked about insurance on our house too. You definitely wanna protect yourself until the Deed/Title goes out of your name.

[CindyLou]

from the day you file forward until the propery deed it actually signed over to the bank you will still be responsible for the home owners dues. You will not be responsible for the back dues. It will be to your best interest to sign a deed in lieu of foreclosure ASAP so that you are no longer responsible for insurance and HOA fees!!! Just stating the intention to surrender does not take away our liabliity form the file date forward!

[Boscoe]

So what is everyone's experience with insurance on surrendered properties? Doesn't the lender have enough of a stake in the property to insure it themselves, i.e. 'forced place insurance' or something like that?

For example, you own property with a market value now of about $200k, but the o/s loans to the lender is $300k. Since they have an obvious stake in the $200k, isn't it in their best interests to insure the property against, fire, wind, burglary, etc. to protect their remaining investment?

I am not sure I understand why they would not, and as such, why we, the bk debtors, would need to worry about it.

Please advise.

Thanks.

[Beach Bum]

So what is everyone's experience with insurance on surrendered properties? Doesn't the lender have enough of a stake in the property to insure it themselves, i.e. 'forced place insurance' or something like that?

For example, you own property with a market value now of about $200k, but the o/s loans to the lender is $300k. Since they have an obvious stake in the $200k, isn't it in their best interests to insure the property against, fire, wind, burglary, etc. to protect their remaining investment?

I am not sure I understand why they would not, and as such, why we, the bk debtors, would need to worry about it.

Please advise.

Thanks.

That's a good point. It seems like it would be in their best interests, but the foreclosure process is so slow it probably dosen't work that way. Crazy!

[B12]

No need to pay the HOA dues, as said, they become a lien on the property.

If there is no insurance, the lender will purchase an insurance policy for you and bill you the premium. I have no idea what happens if you do not pay the premium, would be interesting to find out, but.....

I would not take a chance on having no insurance until the deed is completely out of your name, especially if you leave the property vacant.

I would call the insurance company and ask for a monthly or quarterly payment plan if you insurance is now billed yearly.