Q about home condition at foreclosure

[stressedNC]

Ok I need to stop reading posts because it gives me new things to worry about.
We have no ceiling in one room. We had a major leak the ceiling started falling we removed it and tried to fix it realized we couldn't and haven't had the money to do so yet. Will they consider this to be damage that we are responsible for? Also at the point when we decided to let the house go we had replaced the flooring in four out of the five rooms on the first floor the other is not finished yet will this be considered us damaging the propert? I guess my question is will they come after us for unfinished home improvement projects?

I hate the idea of putting another thousand dollars in this place but if not doing it means we are going to get sued I will do it kwim? Replacing the ceiling seems the silliest since the bathroom above is still leaking(needs gutted and replaced all the pipes are bad).

[justbroke]

I'm going to answer outside the Bankruptcy context... not the Bankruptcy context provides anything more.

If you go into foreclosure, the home is worth what it's worth. It will be sold at a public sale for what the market will bear. Many times, foreclosure investors don't even get a look inside the place, so factor in the worst of conditions.

I would not worry about the condition of the home. The home is going to "sell" for less than it's probably worth anyhow, and there's nothing you can do about that (market, fact it's being foreclosed upon, speculation, etc).

So regardless of what you did or didn't do, they will come after you for any deficiency between the amount you owe (mortgage balance plus attorney/foreclosure fees) and what it sells for at auction. This deficiency will be your responsibility, unless you're in a State which protects you from this deficiency... or Bankruptcy.

[stressedNC]

Ok, Thanks. We are filing bankruptcy I just wasn't sure if they would come back and say we damaged the property. Sort of like if the house was vandalized and we weren't keeping current on the insurance, we would be responsible/liable for the damage, right?

[justbroke]

Ok, Thanks. We are filing bankruptcy I just wasn't sure if they would come back and say we damaged the property. Sort of like if the house was vandalized and we weren't keeping current on the insurance, we would be responsible/liable for the damage, right?

No need to worry about any of that. Unless you came and criminally destroyed/burned down the home... there's nothing they can do. Your financial liability ends with your discharge if you surrender the property in the Bankruptcy.

[staytogether]

Your financial liability ends with your discharge if you surrender the property in the Bankruptcy.

Does this mean you will owe money if you decide to walk away after your BK is already discharged?

[justplaintired]

Walk away? After discharge and you include the house in the BK? If the house is included in the BK and you do not reaffirm, you are not obligated in any way on this home. It's just that, you walk away from the debt and the house.

[justbroke]

Does this mean you will owe money if you decide to walk away after your BK is already discharged?

If you file Chapter 7 and surrender (or otherwise don't reaffirm your debt)... then you will not have to pay for any money for any deficiency balance.

The key is that you surrendered or did a ride-through on the property. if you didn't reaffirm (before discharge) you can walk at any time with no financial worries.

However, if you reaffirmed -- and only if you reaffirmed -- and later decide to walk... then you may be responsible for a deficiency balance.