Walking away in June. Questions....

[Miknan]

Details: discharged ch 7 and included house 11/11. I have a VA loan with WF and HELOC with 5/3rd. I haven't heard much from the bank. I got a letter to accelerate but no NOD yet. The VA sent some guy to inspect the house and my wife let him in! He said they ( the VA?) could sue us if there is damage to the house. I'm not sure what kind of damage he's talking about since we aren't trashing the house but there are things wrong with it, ie, leaking basement wall and some mold in a bedroom downstairs I found while packing.

We are leaving in June.

1. I just got a bill for home owners insurance due in May. What to about that? I'm thinking of going online and reducing everything as low as possible and keeping it until they find out the house is vacant and cancel it themselves. I guess the only thing to worry about is the liability if someone got hurt here.

2. Utilities- what to do? I'll turn off the water but I kind of have to keep electric because in a big storm my basement will flood if the sump pump isn't on.


3. HOA- I paid the dues and will pay somebody to cut the lawn. I'm tempted to still use the pool since I paid the dues and technically still own the house but I don't think I'll be too welcome there.

Thanks for any replies/advice.

[mlsj2009]

Hi Miknan,'

Congrats on you discharge. Not a lawyer here, but I do have an opinion on your predicament.

Sorry about the rude bellowing VA self imposed agent that felt he had to inform your wife about malicious intent. That is most likely what an adversary would have to prove in a court of law to make you libel for any damages, and in light of your actions and what you are saying , not likely. The guy had better be careful, though, of making threats like that unless the BK court gets wind of his threats and misconstrues that as a blast against their decision to have all the financial arrangements with ownership responsibility discharged in bankruptcy. That might be his violation of the law if he isn't careful.

As to your fist question, home owner insurance is a matter of choice and like you already said, you may keep enough liability insurance to protect yourself. My understanding is that you are not required to keep the property insured for physical damage as those responsibilities have been discharged. The good news is, you are no longer financially responsible for the house.

Q2- Nice of you to want to protect the house by keeping electricity on, but again, I don't think you are obligated financially to do so. Remember, just my opinion and I am no lawyer, but I think it is an insurance problem, so you should probably inform the lien holder about the possibilities and that you are abandoning the house. It might be wise to document the statement you are leaving and they now have the responsibility to take care of their investment. Nothing malicious about this move that I can determine. You are trying to help them take care of the house and protect their investment. By the way, I think it is malicious of the bank to agree to finance a home in a FLOOD ZONE. oh, well, just my opinion like I said.

Q3- HOA dues are not dischargeable in bankruptcy as you already know. Since you are still named on the title to the property and are paying the HOA dues, I wouldn't blame you for using the benefits you are paying for. If it were me, I would swim, smile, and occasionally wink at my peers. I would attend all their parties and drink their champagne too, but that is just me.

Good luck in your new financial start in life.

Details: discharged ch 7 and included house 11/11. I have a VA loan with WF and HELOC with 5/3rd. I haven't heard much from the bank. I got a letter to accelerate but no NOD yet. The VA sent some guy to inspect the house and my wife let him in! He said they ( the VA?) could sue us if there is damage to the house. I'm not sure what kind of damage he's talking about since we aren't trashing the house but there are things wrong with it, ie, leaking basement wall and some mold in a bedroom downstairs I found while packing.

We are leaving in June.

1. I just got a bill for home owners insurance due in May. What to about that? I'm thinking of going online and reducing everything as low as possible and keeping it until they find out the house is vacant and cancel it themselves. I guess the only thing to worry about is the liability if someone got hurt here.

2. Utilities- what to do? I'll turn off the water but I kind of have to keep electric because in a big storm my basement will flood if the sump pump isn't on.


3. HOA- I paid the dues and will pay somebody to cut the lawn. I'm tempted to still use the pool since I paid the dues and technically still own the house but I don't think I'll be too welcome there.

Thanks for any replies/advice.

[tobee43]

i am so in agreement with everything mlsj has written! we did almost step by step as written. we had FHA and not VA...also do you have PMI on the house??

i do know that some attempt to keep insurance on the property, however, the state we had/have the property no insurance company would cover a non owner occupied property for us. also, it almost immediately went under a chase umbrella policy for fire damage etc.

i have continue to read about certainly liabilities until the deed changes names, such as slip and falls etc. we recently had someone and (this has been over 4 years and our property is still not foreclosed on as yet), but we had someone go and post NO TRESPASSING signs and ENTER AT YOUR OWN RISK...ALL OVER THE PLACE! we also had someone take pictures with those signs up holding a current newspaper...(i feel like an underground debtor on the run!), now, we haven't been back in over 4 years, but we just wanted that added punch, since in that state posting those signs are good enough for the law to respect if anyone did get injuries it was because they broke the law by the trespass.

if someone takes them down, we still have proof that we posted them, not that i am worried because i'm really not, i'm just covering all the bases..or as many as i can possibly think of.

also, we had no HOA, however, those fees and costs are not dischargable so it is wise to keep up on them and the maintenance on the property before the HOA charges you high amounts for that

[Miknan]

No PMI Tobee but the VA insures the house similar to PMI, I think. Anyway, an update:


Looks like the sheriff auction is 5-17-12. I haven't got any kind of notice or anything. Thought I'd least get a sticker on the door or something. I found out by pure luck. I got a postcard in the mail. One of those ones you usually just throw away. I thought it was junk when I saw "We can help you, call 1888*****. Then I noticed the line "Public Records show your Sheriff Auction date is 5-17-12". I still thought it was a scam to call them but my wife called WF and that is the scheduled date. So I guess that's it. Actually for me, the timing couldn't be better. Once out of my name do I still have to maintain the yard or anything because of the HOA until the end of the redemption period or just the sale?

[tobee43]

yes, i would think the VA would so that means at least after the sale they can go after the governement for any shortfall.

once it is out of your name you don't have to maintain the yard or anything because at the point the deed has changed hands and names and it's no longer your reponsibility.

[mathom1]

Quick question....how will one know when the deed has changed hands/name?

[goon]

see if your county recorder has records available online. I was able to monitor the county recorders website and tell when my house actually changed hands via the records there (be forewarned these records are not always easy to read/understand)

[tobee43]

and usually in your local newspaper they show the transfers as well. as long as it gets sold at the sale, it will change hands from yours to the new owner whether it be the bank or another person.

[mathom1]

Thanks all for the info. Just received notice of when the sale will be....September. If it sells, I no longer need to maintain the yard or HOA...right? What if it doesn't sell?

[tobee43]

if it sells you no longer have to keep up with the HOA rules and regs, however, until it changes hands you have to keep up with all the provisions of the HOA or you could incur more fees and fines, which, of course you do not want to do!