Surrendering a home through a bankruptcy can seem like a simple solution to rid yourself of your responsibilities with a home; however, surrendering your home through a bankruptcy can become somewhat complicated. One of the most important things to remember regarding surrendering a home is that even though you have surrendered your interest in the mortgage, your name is still on the deed of the house until it is foreclosed on and put into someone else’s name. This means that even though you may not want the house, and may not even live in the house anymore, you are still responsible for the following things:
Continuing to pay any HOA (Home Owner’s Association) fees that are incurred post-filing. While you may not be responsible for any unpaid HOA fees that were incurred prior to filing, you will be responsible for any HOA fees that are incurred AFTER filing. This is important to remember because the home owner’s association can go after you for anything that you do not pay post filing.
Maintain insurance on the property. Maintaining insurance on the property you are surrendering is extremely important because, as stated above, your name will still be on the deed of the house until it is foreclosed on and put into someone else’s name. If something should happen to the house while it is still in your name, you are responsible for any damages. TheSaint Louis and Southern Illinois area is notorious for poor weather conditions, so it is important to protect yourself and the property from any damages.
Maintain the upkeep of the property. While it may seem silly to go to your old home solely to mow the lawn, this is important to do until the home is out of your name. Many towns and cities have codes enforced by ticketing that regard to the outside appearance of your home. If multiple tickets pile up over time, police can even issue a warrant for your arrest to obtain those funds from you. It is also important to remember to prepare the home for upcoming seasons. Make sure the heat is on during the winter to ensure pipes do not freeze and/or burst, and in the summer make sure the home is adequately protected as well.
Surrendering a house is not as simple as writing down you do not want it anymore; there is work that you need to make sure is done to protect yourself until the home is officially out of your name. If you have questions regarding surrendering your home, contact a St. Louis Bankruptcy attorney today!