Surrendering home: Property taxes and insurance questions

[greenthinker]

Good Afternoon,

We modified our Ch. 13 plan a year ago to surrender our home. Since then, the lender (B of A) has been getting no money and is sending us "for info only" statements, with no indication that they are about to begin the foreclosure process. So, we're continuing to live in the home and leverage the situation to save as much money as possible.

The property taxes and insurance are paid through an escrow account, and since the lender has been getting no money from us, the escrow balance on our statements has a negative balance. Are we going to eventually be liable for the property taxes and/or insurance? Or, are those expenses the lender's responsibility, since the plan has been modified to surrender the property?

Thanks!

[keepsmiling]

Taxes def not your problem.
Insurance.... sometimes another story. Lots of discussion on that here as to liability. I'd consider getting that on my own. But if the house burns down, (heaven forbid of course)... it's not your problem.

[sophieanne]

Hi greenthnker,

Because you're in Wa state (my state) you got my attention. It may be none of my business but I'm curious why you chose to surrender your home. How far into your plan were you when you chose to do that???

[Floridagail]

We stopped paying our taxes and insurance , when our escrow ran out BOA picked up the taxes and insurance policy. The insurance policy I had to laugh was 300% more cost then ours was. Who cares I am not paying. We surrendered house also in bkrptcy. We did keep paying our hoa fees , but not this year.
We are still here, hopefully a few more months left b4 auction sale.

[greenthinker]

Hi greenthnker,

Because you're in Wa state (my state) you got my attention. It may be none of my business but I'm curious why you chose to surrender your home. How far into your plan were you when you chose to do that???

We decided to surrender about 7-8 months into our plan because we are more than 100K upside down, with little or no hope of getting a modification. And, while it's a beautiful house, it's not ideal for us. Given those factors, it wasn't a tough decision.

[sophieanne]

Hi greenthinker and thanks for your note. I'm understanding that feeling right now..10 months into our 100% plan and 80,000 underwater (must be WA state). I'm wanting to wait another year or so and see if anything ever turns around. Very affordable mortgage so might as well keep paying (much cheaper than rent I'm sure). But if things don't turn around may follow what you're doing. I hope everthing goes well for you.