Property Taxes
Property taxes are your responsibility until you surrender the property to the lender. Sometimes, property taxes are bundled with your mortgage and a mortgage default will bring mean tax delinquency. When you file bankruptcy, all unpaid property taxes will be part of your case. Timing here is important. If you don’t hand over the keys on time or make an error with the dates when you file, you could continue to owe taxes on the property. Talk with your bankruptcy attorney to make sure you minimize your property tax debt.
HOA Fees
Similar to property taxes, HOA fees owed before filing bankruptcy are part of your case but HOA fees due after filing bankruptcy are still yours to pay. For this reason, deciding whether or not you want to surrender your home and getting the dates right when filing bankruptcy is very important. Sometimes, HOA fee settlements can be negotiated. This can drastically lower how much you have to pay.
Home Insurance
Although it’s rare, the unexpected can happen. Fires, injuries, earthquakes, and other natural disasters are all real problems. Insurance is often bundled with a mortgage and when mortgage payments stop, the home may become uninsured if the lender does not make the insurance payments out of its own pocket. This leaves the homeowner vulnerable. In the case that you cannot afford home insurance, contact your lender right away. It is not uncommon for them to pay insurance because it protects their investment.
Utilities
Staying current on utilities is always recommended. Depending on the circumstances, lack of utilities can lead to property damage (i.e. broken pipes from freezing water). If you cannot afford utilities, there are programs that offer help to lower income families, so keeping your utilities on can still be an option.
If you have any questions or concerns with regard to your responsibilities when surrendering your home, contact your local Yuba City bankruptcy attorney at (530) 797-4402.