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We Filed Bankruptcy and Discharged Our Mortgage But We Are Still Being Billed for Taxes. – Missie

“Dear Lewis,

My husband and I filed Chap 7 bankruptcy in Orange county, Florida. It was discharged in May 2010 and included our home. We moved out of the house in February 2010. We are continuing to get notices from GMAC Mortgage that they’ve force placed insurance and were told that we are still responsible for some fees, liens, etc. associated with that mortgage. It currently shows in the account history that the escrow account is negative appx $8200.

Are we liable for any fees still associated with the house? What can we do to remove our selves from the house? Thanks!

Missie”

Dear Missie,

This is a common misconception in bankruptcy…. that surrendering the house means you are no longer responsible in any way. The bankruptcy discharge only eliminates your personal obligation to pay the debt.

You are still the legal owner of the home until the bank starts and finished the foreclosure process. And in Florida, during these times, we know that can take forever – years.

So you are technically still liable for the HOA dues that come due post bankruptcy petition filing date. Usually though, I see the HOAs sitting back and collecting once the foreclosure finishes. But this might start to change if the banks take forever to foreclose.

As to insurance and taxes, you can ignore the taxes. But insurance is something else to consider. Since the house is still in your name, if someone injures themself on your property, you may be sued. And since this is after the bankruptcy, it cannot protect you.

Some things to consider in how to manage the home that is still in your name.

Good luck!

We Filed Bankruptcy and Discharged Our Mortgage But We Are Still Being Billed for Taxes.   Missie My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

If you have a bankruptcy question you’d like to ask just use the online form.

We Filed Bankruptcy and Discharged Our Mortgage But We Are Still Being Billed for Taxes. - Missie by

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About Lewis Roberts

Lewis Roberts
Florida Consumer Protection Attorney
  • Jack

    ” But insurance is something else to consider. Since the house is still in your name, if someone injures themself on your property, you may be sued. And since this is after the bankruptcy, it cannot protect you.”

    I don’t believe this addressed the question from the poster, who stated that GMAC was dunning them for the “forced placed insurance”.  I’m interested, too, if that can be done by the mortgage company, after bankruptcy?

    • http://GetOutOfDebt.org Steve Rhode

      The bankruptcy would have removed your obligation for the loan but GMAC would still have a lien position on the property which is still in your name. It certainly seems entirely plausible but if you want a definitive answer you’d need to talk to a licensed real estate attorney in your state.

  • Missie P

    Thanks so much!  There are no HOA dues; it’s fees that GMAC keeps tacking on each month.  Appreciate the insight.

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