What do we tell the bank,walking away from house

[kimba251]

Chapter 7 discharged Sept 2008 and although we originally planned to stay we are moving out this weekend. I am going to call bank today to tell them but what do I say?
Do I need to mail them keys?
Should I also send a cert letter? (what should it say if so?)
We are turning off electric and water monday after weekend. It is going to get cold here soon and we will be in another state. Does bank winterize the house?
Who is responsible for a water and electric bill if bank turns those back on after we leave?

Thanks again, this board has been a much needed lifeline

[keepmine]

If you're moving on, tell 'em the truth and ask where they want the keys mailed.
Cancel the utilities the day you move out and let the bank know the date. What they do is their business-not yours.
I'd do all of this in writting sent CRRR so you have a recors of when you requested the utilities be disconnected.

[kimba251]

OK thanks. So we are not responsible for utilites we shut off if they turn it back on and rack up charges?

[keepmine]

OK thanks. So we are not responsible for utilites we shut off if they turn it back on and rack up charges?

No-once you disconnect utilities, future charges to that address are not your responsibilty. Good luck with the move!

[AngelinaCatHub]

OK thanks. So we are not responsible for utilites we shut off if they turn it back on and rack up charges?

Until they actually repo this house, you still own it. Not my idea, only the law. You must protect that house as you are discharged and could be held responsible for damage by improper and reckless abandonment.

It is reasonable for you to winterize the place yourself. Get with the bank and get them to release you legally. If pipes freeze or derelicts get into the place and gut it, you may not be off the hook.

It is not difficult to winterize and not expensive. Turn off the Water tank, drain it out with a garden hose, open all faucets. If you can, blow the lines with an electric air pump. Put a little antifreeze down the drains, drain the toilets including the water in the toilet bowl. Blow some antifreeze into the water lines if you can.

'Hub

[ready2live]

We are keeping the house too, but if we decide later, we can just walk away from it????

[kimba251]

How do I get the bank to release me legally?

[kimba251]

As for damage and liability. THe back yard floods into the basement if it snows then rains when it is cold. If water goes into the basement after we move out (we will be states away after this weekend) is that our responsibilty? I don't think our insurance will cover it because it's water plus they will probably cancel our policy once we notify them we moved out. How does that work? SHould I tell mortgage company water could go into basement?

THis is part of why we have to leave to, we can't afford to build up the yard to fix that problem. We were never told the yard slants into bulkhead and have to pump out the water pool around the area all night long when it rains in winter to prevent the water from going in. (we learned the har way that happens when there was 6 inches of water in there our first year)

[kimba251]

So after one hour on the phone to calls outsourced to India and people who have no clue what they are talking about I am no further ahead. They told me since my bk has been discharged I have to pay Nov mortgage (yeah ok) and they would send me a packet for loan mod or deed in lieu. Once they review those they will tell me my options.

So I guess I will send a cert letter and move out. I am a little concerned about no insurance on the house though since mine will void out at 30 days and they won't do anything they said until at least 60 days or more.

Anyone have any personal experience to share about how walking away went fine ?

[gwar11d2]

I'm wondering about this too. I'm actually forfeiting the house and am no longer in it prior to my 341 on Friday. (Actually haven't lived in the house for about 3 years...was a pri-residence turned into non-paying-rental). I'm thinking after my case gets discharged I'm no longer responsible.

[Limitman]

My girl friend and I moved out of her house almost 3 years ago and she filed CH 7 about 6 months ago. She was told to keep insurance and upkeep of the lawn until the bank actually repos it. She didnt make a payment for at least a year before they would even move for forclosure. Now she is still responsible for it I think until January when the bank takes it over. There has been a little damage due to pipes freezing so I'm not sure what if any charges she might incure due to that, most damage is just some pipes in basement need to be repaired (easy fixes) no water damage or anything and the rest of house is in good shape.

[kimba251]

My insurance policy says it is basically void after 30 days vacant. I don't know how I will be able to keep it insured longer than end of Decmebr. It will be totally empty after this weekend and we will be in another state.

Do you have vacant insurance? How much does that go for if so?

[keepmine]

I just don't see you having any responsibility for utility bills after you send a disconnect notice. Once the bank is informed you're out of there, they need to take steps to protect their property.
You'd be responsible for any HOA fees {if any} that accumulated post bk. But, I dodn't see how you're on the hook for routine normal maintenance.

[awayalways]

...Anyone have any personal experience to share about how walking away went fine ?

OP I have had several houses that I had to give back and this is what happened. On the first property my tennant left it in pretty good condition and it took 15 months to foreclose. The bank sent me a 1099 for the deficiency but I filed IRS form 982? and so I didnt have to pay any additional taxes on it. This was a mortgage foreclosure in Nov 2007 I think.

The second property foreclosed and the lender sued me for the deficiency and won a judgement but that was discharged when I filed bankruptcy. This was a mortgage foreclosure in May 2008 I think.

The third property was clean but I had to leave the upstairs unfinished. When it foreclosed, the 1st lender got all their money but the second mortgage was deficient and I discharged it in bankruptcy. This was a Deed in trust and lasted 11 months before foreclosure.

The forth property is still in pre-foreclosure going on 35 months now and I have it rented out. The bank would not work with me on deed-in-lieu, ect. So Im keeping it until they foreclose. This is a mortgaged property that I included in my bankruptcy and I stripped my name from the deed but DH coundn't and he is still receiving collection letters from the HOA on this property.

So I had lots of collection problems with all the properties but my BK7 took care of everything. And I was so excited when I was able to purchase a new house 10 months after all this with a loan from the USDA guaranteed mortgage program.

I hope it works out for all you guys too ;) aa

[Limitman]

Not sure how your insurance works but as far as I know she still has the same insurance on it as if we lived there, we do still live close by and she did tell them the house was vacant maybe also what helps is she was a long time customer. Good Luck, I'm in a 13 that will be confirmed hopefully in december.