Motion for Relief

[LORIELE]

Hi, I have been lurking for awhile. The answers on here are awesome and are keeping me well informed and taking care of my questions while in the process of filing BK. Thanks!

I'm a little freaked out today. My bankruptcy was filed on 8/24 and I just got a Notice of Motion for Relief From Stay and to Abandon Real Estate in the mail today from the mortgage company. I actually moved out of the property in May due to being unable to maintain the upkeep along with the mortgage. The house is in a state that I had no interest in trying to keep it. I spoke with the mtg company about short sales and deed in lieu. I actually had a realtor come out to see about the short sale. They hinted that for tax reasons I would be best to go ahead with the bk.

Since the attorney's office is closed today, just thought I would ask for a little advice. Is this something I should be worried about? Or since I have already moved will they just go ahead in order to sell the house? My attorney has kept mentioning the fact of keeping the grass cut and the insurance on the house. The motion says I have 15 days to object. If I don't, can I stop having the grass cut and stop the homeowner's insurance?

Thank you for any and all help! Just following the boards has really kept me calmer during this whole process. So glad I found the forum, had seen it in a magazine.

[lrprn]

I'm a little freaked out today. My bankruptcy was filed on 8/24 and I just got a Notice of Motion for Relief From Stay and to Abandon Real Estate in the mail today from the mortgage company. ... Is this something I should be worried about? Or since I have already moved will they just go ahead in order to sell the house?

Your mortgage lender has to go to the bk court to get the automatic stay lifted so they can start foreclosure proceedings - that's what your paperwork sounds like they've done. It's all routine when you are surrendering your home through your bankruptcy.

My attorney has kept mentioning the fact of keeping the grass cut and the insurance on the house. The motion says I have 15 days to object. If I don't, can I stop having the grass cut and stop the homeowner's insurance?

You are still the responsible owner of the home until it's actually sold at auction, so I believe you need to keep cutting grass and paying insurance until then. (If I'm off base here, I'm sure someone who has had their home foreclosed on will straighten me out )

Thank you for any and all help! Just following the boards has really kept me calmer during this whole process. So glad I found the forum, had seen it in a magazine.

On behalf of our moderators and our administrator, Lazar, we are all very glad to know that BK Forum has helped you so much! That's exactly why we're here!

[Boscoe]

The insurance, yes, the grass being cut? Don't believe this needs to be done. It will just result in another lien on the house, along with taxes and utilities and of course, the missed payments...........

[supastar84]

Are you sure about the insurance aspect? I filed last month, and am included my four rental props in the BK. My homeowner's insurance policies are expiring this month. My BK atty said not to worry about renewing. I need to find out for sure, don't want to create any trouble should something happen to one of the homes. Thanks!

[CindyLou]

I think the reasoning for the insurance is for liability purposes. For example, should the mailman slip and fall on your property delivering the mail or the kid from down the street climb the fence and break his leg and you get sued you aren't stuck with a $25,000 medical bill. You could probabaly call and up your deductibles. If you are not worried about liabilities, then you could stop paying. Your mortage company requires you to have insurance and if you don't pay your own then they will add a policy and tack it on to your bill. That bill will then be discharged, so its all really the same, I guess. Either way I guess you're really covered. Just my 2 cents.

[Boscoe]

yeah, I cannot believe the lender would not put a policy in of their own - since you are in a bk, they cannot ask you to do it, as it is a violation of the automatic stay. But to protect their own interests, wouldn't that be enough?

[demismom]

I was told we NEEDED to keep insurance on the house - we are still TECHNICALLY the owners until it sells at Sheriff sale on the 20th this month. We've been cutting the grass to keep the neighborhood looking nice, but we haven't lived there for 2.5 years. We had renters for around half of that, the rest of the time it's been empty.

[LORIELE]

Thanks for all the info

Thanks for all the info everyone! Looks like I need to just stick it out with the insurance. Insurance is good till March, hopefully won't need to renew it. I've checked on the grass periodically and had it mowed.

Appreciate all the help!