Question about abandoning property...

[jgordo52]

Good Evening,

I was discharged 12-31-08. I live in Illinois and did a ride thru. House is ONLY in my name. Last June (6/1/11), I stopped paying on my townhome and have still kept up with HOA fees and am living rent free. I work 52 miles away, each way, am getting married in November and we both would like to move closer as almost 2.5 hours on the road a day isn't really a great "quality of life." I figure 18 months, I got enough free living and we would rent from a buddy of mine for 650/month. All in all after not paying the utlities for my town home and auto gas, it'll actually even out or get close, about 30dollars.

My question is, my townhome has a crappy furnace that works intermittently with some jimmy rigging, and if i turn off the utilities before winter and move, I'm almost assured of the pipes freezing, possibly bursting and the house basically being useless. What options do I have until they re-claim the home?? If I were to leave, would they force my homeowners to cover the damages if anything happened? My fiance and I have talked about staying through winter and then moving, but then I worry about what happens if they don't take the home before winter 2013? IF I did move before they took the home, especially since I live in Illinois, I would continue to pay the HOA fees, but I really think those extra 2-3 hours a day will be big.

Thoughts?

Thank you,

Jeff

[Bell30656]

Jeff, keep in mind that if you "walk away" the bank could leave the property vacant for years without transferring the deed. This leaves you paying HOA fees for a really, really long time. You could rent out the house. Keep in mind that foreclosure doesn't happen overnight. They have to give you lost of notice. You are served, you go to court, etc, etc. There is a foreclosure procedure.

Myself, I'd either stay in the house and keep banking money until the jumped through all the hoops and tossed me out. Or I'd rent it out until they foreclosed. I would not leave the house empty so the bank could simply change the locks but the HOA would keep charging me money in perpetuity. Don't forget if the townhouse falls into disrepair, it would be you receiving the citations from the municipality or the lawsuits from the neighboring townhouse owners if they begin to have rodent problems from your abandoned property.

Have you spoken to the bank about a potential "Cash for Keys" deal?

It's worth talking to an attorney. I once read a book on brain surgery but I'm not ready to try it on myself.

[jgordo52]

Sorry, I should've included. I was served last October and a summary of judgement was given on 4/27. So I may or may not have until October or later depending on how long it takes to have them get to me.

[tobee43]

rec'ing a summary of judgement doesn't necessarily mean the foreclosure will happen anytime soon as Bell as pointed out. we left our house, however, there was NO HOA involved. we sent an email to the bank notifying them that we were leaving since it was the dead of winter in the northeast. we turned off all the water and did our best, however since that area many times hits windchill factors of -30 degrees we thought it important to let the bank know when everything was being shut off. we understand within two weeks they winterized the property and by doing so they don't have to use any utilities such as oil or electric from what i understand. in our case the bank has left the house go to such disrepair that it is literary underwater not figuratively....it's now in a swamp as they did not tend the leech fields, septic, ponds etc. more that likely our old home will never be foreclosed on, most likely in another 10 years it will be in a big pond



that was over 4 years ago, also as Bell points out depending on your state statue it could take years to transfer a deed if the lender chooses not to foreclose. for an example in the state we had our property it is a 20 year statue involved whereas the bank doesn't have to transfer the deed that entire time. so i would check first to see what the statue of limitation is in your state for deed transfers, it's a little more in detailed that i'm stating, but i would definitely check it out with respect to that IF it's important to you.

also, if you did a ride through and you in fact listing the mortgage amount on the petition and it was discharged, the bank will just continue with it's proceedings.

[Bell30656]

Also keep in mind that as the owner of the property it will be your name that appears on the list of delinquent taxpayers when the property taxes aren't paid. And if anyone slips and falls on the property? Guess who gets to be the defendant?

[tobee43]

Also keep in mind that as the owner of the property it will be your name that appears on the list of delinquent taxpayers when the property taxes aren't paid. And if anyone slips and falls on the property? Guess who gets to be the defendant?

just a comment about this type of situation. first we know that all the taxes are paid by our lender otherwise the house would be lost from the bank for a very small sum, so the bank pays all the taxes, in our situation anyway.

also, we have, or did at the time we left, which is law in that sate, as well as the lender (which we JUST found out) has no trespassing signs all over. in that state that works. if someone gets hurt and is trespassing there is no liability, even if they try in a court of law. i would think that any court of law would know and understand who and whom is not allowed on the premises. i have yet to find any case law whereas someone whom lost their home due to bk or foreclosure by the bank was find liability. not that it is impossible, however, i think unlikely considersing todays climate of vacate housing.

one time, many years ago, we lived across the street from a huge home with a pool. the people just walked away. a local child unfortunately drown in their pool. they were never held liable. although i truly don't know the entire story about the situation, i do know there were no criimial or civil charges filed in that case.

once again, i will stress and continue to stress, if a state has a 20 year statue of limitation where they do not have to transfer the deed and they never sell the property that is the lenders choice not the old owner. that would be saying that if the bank decides never to sell or demolishes the house just because your name wasn't removed you are responsible. i know there would be a legal basic for an excellent argument. also, in the light of the fact in MANY states insurance companies if the premises were your primary residence will no longer insure period, no way, no how. that i know for a fact since we tried every company understand the sun, only to find out the lender held insurance and NOT just fire and hazard, but also a limited liability. i don't know how it works for everyone, i can only express what and how it has been working from what i see.