Walking away...what am I obligated to pay?

[pruning]

We filed Chapter 7 and received a discharge two years ago. We retained and paid on our house at that time because we weren't sure where to go. We've finally figured it out. We're trying to negotiate a deed in lieu as we really want the property out of our names prior to moving on. But if that doesn't happen, we're going to have to walk away. The house is too expensive to maintain. What are we obligated to pay if we have to wait for the bank to do a foreclosure? Do we have to pay the property taxes? I have no clue how this works. Thank you in advance for any insights!

[LadyInTheRed]

When a mortgage is discharged, the debtor can walk away without any obligation. The exception is if there are HOA fees in which case the debtor is on the hook for all HOA fees incurred from the time the BK was filed through the date title to the home is transferred. Property taxes become a lien against the property.

[HomeNow2]

How long does it take for the title to be transferred? Is there a way the homeowner can speed that up after the BK and foreclosure? Is it worth it to go to court during the last foreclosure trial dates and ask that it be signed????

Hmmm, what about fines from the village for long grass? Is the homeowner responsible for that in any way or is it a lien agains the house too?

[tobee43]

How long does it take for the title to be transferred? Is there a way the homeowner can speed that up after the BK and foreclosure? Is it worth it to go to court during the last foreclosure trial dates and ask that it be signed????

Hmmm, what about fines from the village for long grass? Is the homeowner responsible for that in any way or is it a lien agains the house too?

unfortunately, you are at the banks mercy. they don't even ever have to foreclose until whatever the statue of limitation is in your state. i know in my old state where my old property still sits the statue of limitation is 20 years...or maybe never.

additional Illinois is a Judaical state so your foreclosure has to go through the court system which takes a while. you can usually check your sheriff's wed site to see how fast they are moving in your county. but it does take a bit so you have some time.

as lady points out, provided you listed the mortgage on the petition and you were discharged and closed you can walk away with no obligations. you can also stay and save as long as you can for your move since you will have some time before they can get you out. also, as lady as stated any HOA fees, or dues will continue to incur until the deed changes hands and that will only be after the sheriff's sale.

[HomeNow2]

Our redemption period is up in July 2012. The BK attorney in March 2012 told us to secure alternative housing by September simply because there isn't much going on in the county of Illinois that we are in and things are moving quickly. We have not paid on the house for a bit more than a year, the ch7 was finished last summer.

Just wondering now on how long for the deed to transfer out of our name and if we need to pay for the grass cutting fees or violations from the city which will take place after we move.

Any insights on if we could ask for 'Keys for Cash' on this from BankUnited???

Thanks!

[tobee43]

well whether your atty told you that or not, it is still a court procedure and the law must be followed and that does take time. usually at least a year, two, three, in our case well over 4 in judicial states.

the deed transfer will be almost immediate after the house changes hands, until that time i would check with your town if there is no HOA involved and see what the laws are about cutting the grass etc. each town has there own laws governing such regulations. in our town, as an example there is none, you never have to cut the grass or shovel the driveway, that's just there. again, each town or township is different.

i would see if bankunited has such a program, however, i would not leave one day before i had to if i needed to save money.

[LookingFrwrd]

Same here -- old house is in Will County, Illinois and we are going on almost 3 years since the Judgment of Foreclosure was granted. We've had 8 sale dates postponed and 3 sale cancellations. Nothing currently on the calendar for us - our very first sale date was March 24, 2010.

We've begged and pleaded with BofA to move on the foreclosure to no avail. Latest update from them is that we'll go to sale August 1st this year. Yeah, right.

House is in HOA community so we've been paying monthly dues and for lawn maintenance since we moved out of state in June 2009.

Best of luck to you. I can't wait for the day when this nightmare is behind us!

[subking]

These are the stories I don't understand. I'm getting letters from BOA attys all the time with threats of foreclosure we went to a housing counselor and attempted a mod but that didn't work out.

Now were again getting mail saying their going forward with the forclosure. Of course they have nothing to gain because the house is underwater very deep with a first and second, and in need of many repairs some being major water damage to the foundation and garage (theres no way for them to know this) but their attys sure seem agressive to forclose. Maybe its all bs to scare us, I'm not sure.

We have not paid property taxes for the year of 2011 and there is no HOA fees. Can anyone confirm in Michigan that when we walk away we not be held responsiable for the past taxes due on the property?

[tobee43]

These are the stories I don't understand. I'm getting letters from BOA attys all the time with threats of foreclosure we went to a housing counselor and attempted a mod but that didn't work out.

Now were again getting mail saying their going forward with the foreclosure. Of course they have nothing to gain because the house is underwater very deep with a first and second, and in need of many repairs some being major water damage to the foundation and garage (theres no way for them to know this) but their attys sure seem agressive to forclose. Maybe its all bs to scare us, I'm not sure.

We have not paid property taxes for the year of 2011 and there is no HOA fees. Can anyone confirm in Michigan that when we walk away we not be held responsiable for the past taxes due on the property?

it may be somewhat confusing for you there in michigan since michigan is both a non-Judicial and Judicial state...it will and does depend on how the bank proceeds in your case, it could go either way...one way you have years to stay and the another way you are out within usually 6 months or so.




Michigan Foreclosure Law

Quick Facts

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: Yes

- Primary Security Instruments: Deed of Trust, Mortgage

- Timeline: Typically 60 days

- Right of Redemption: Yes

- Deficiency Judgments Allowed: Varies

In Michigan, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

In judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, then the court will issue a notice of sale.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

"If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

A notice of sale must be published once a week for four (4) in a newspaper of general circulation in the county where the property is located. The notice must also be posted on the property at least fifteen (15) days after the first notice of sale is published.

The notice must contain the borrower and lenders name, a description of the property, the terms of the sale and the time, place and date of the sale.
The sale must be made at public auction to the highest bidder. The trustee or the sheriff of the county, if different, may conduct the sale between the hours of 9:00 am and 4:00 pm on the date specified in the notice of sale.

The sale may be postponed by posting a notice at the time and place where the sale was to originally be held. If the postponement is for more than one week, it must also be published in the manner as the original notice of sale was given."

[ValleYum]

Past-due property taxes stay with the property, subking. If left unpaid, the taxing authority would place a lien on the property which would have to be satisfied by the bank or the buyer in order to obtain a clear title.

Hope that helps you!

PS: If you don't mind my asking, who is your mortgage with?

[subking]

Thanks for that. I do know the bank BOA has went the way of pubilc publishing but we were on a 90 day hold because we tried to do a mod with BOA but were not accepting their terms, the 90 period is now over and I assume they will move forward with the 4 weeks of publication then the sale of course what ever happens then is unknown becuase that sale can be delayed or postponed at any time. I suppose worse case is it gets sold at first offer, were given a 6 month redemtion period, and then eviction would start.

We just want to know if we can be sued for past due property taxes or not?

Thanks for the answer about the taxes, that is what we thought and thank you for the reply. BOA holds the first and GreenTree the second (GreenTree is owned by BOA however, BOA is extremley difficult to deal with, of course).

[tobee43]

Thanks for that. I do know the bank BOA has went the way of pubilc publishing but we were on a 90 day hold because we tried to do a mod with BOA but were not accepting their terms, the 90 period is now over and I assume they will move forward with the 4 weeks of publication then the sale of course what ever happens then is unknown becuase that sale can be delayed or postponed at any time. I suppose worse case is it gets sold at first offer, were given a 6 month redemtion period, and then eviction would start.

We just want to know if we can be sued for past due property taxes or not?

Thanks for the answer about the taxes, that is what we thought and thank you for the reply. BOA holds the first and GreenTree the second (GreenTree is owned by BOA however, BOA is extremley difficult to deal with, of course).

as Valle was explaining, the past due taxes stay with the property and the bank usually pays them. of course BOA or any bank doesn't want to lose a piece of property over a property tax bill.

i would think you have at least 6 months.

[subking]

Thank you, were planning on 6 months and preparing for that time frame to be the deadline, which is why we will of course not be paying the taxes. Let BOA do that, they screwed up the mod process, don't want to work with us reasonably, so they can pay the taxes is our feeling.

[laurannm]

Sorry to rehash an older thread, but if you walk away from a non-reaffirmed mortgage, are you responsible for bills like electric, water\sewer, etc?