What do we tell the bank,walking away from house

[JimKutkowski]

Until the house is foreclosed on you can be help responsible for damages as a result of neglect. If you already got a discharge in Chapter 7, your lender could chase you to the end of the Earth for those damages.

[kimba251]

Should I notify them we moved out? Should I notify insurance? I am not sure how to protect the house until an unknown foreclosure date. At what point exactly is my responsibility gone, date of foreclosure?

Thanks everyone for your help and experiences.

[Flamingo]

Should I notify them we moved out? Should I notify insurance? I am not sure how to protect the house until an unknown foreclosure date. At what point exactly is my responsibility gone, date of foreclosure?

Thanks everyone for your help and experiences.

Kimba - as long as the property is in your name you can be held responsible. Call your insurance agent for guidance.

[AngelinaCat]

I agree with Flamingo. You need to call your insurance agent. The homeowners policy will become void once you move out. Even if you keep paying the premiums, once something happens and the insurance company finds out the house is vacant, then you will be toast.

You *might* be able to get a limited liability policy to protect yourself in the event some trespasser falls and hurts themselves on your property, but I doubt you will get coverage to protect the home--especially with a known issue of rain flooding the basement.

I'm not trying to scare you, but you need to talk these things over with your agent.

Good luck

[kimba251]

I don't know what to do because we are leaving this weekend. We can't afford the house and I don't want to stay to be kicked out. We found a place,jobs etc in another state and need to be there by Dec. 1st.

If we are in a non judicial state does foreclosure move much quicker?

THe mortgage compnay also offered us a deed in lieu which they wanted all knids of pay stubs, bank statements etc to review to see if they wanted to offet it to us.i don't know that I feel comfortable having to provide financial info to them after my Chpa 7 has been discharged. Is this even an option we should consider since we are discharged??

[frogger]

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.

'Hub

I actually had this talk with my attorney yesterday about some property that I have.

Here's what I was told:

As long as you have possession, you must carry insurance and take care of the property. You can not just "abandon" the property. At the point in time you are going to abandon the property and cancel insurance and utilities, I must take the keys to a responsible party and give them to them.

In my case, it will be taking the keys to a couple of banks and giving them to my loan officer. They ain't going to be happy boys.....

[momtoroxy]

Seems odd that the mortgage company wants your financial info AFTER your discharge! Wasn't the debt discharged in your ch 7?! I am concerned also because we could be in the same situation. We just had our 341 yesterday and will be hopefully discharged by Jan 17th. DH has been applying for other jobs in CA (we are now in NV)...keep us updated!