Ifmy house is being surrendered in a Chapter 13, am I still responsible for paying the property taxes and homeowner’s insurance?

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Ifmy house is being surrendered in a Chapter 13, am I still responsible for paying the property taxes and homeowner’s insurance?

I have gathered that as long as my name is on the deed, and until the lender repossesses the property, I could still be liable for future property damage or a personal injury if someone were to get hurt on the property. If I no longer pay the mortgage and the property taxes/house insurance used to come from the escrow, should I now personally pay both of these? What could happen if I didn’t pay the taxes? How long does it take for my name not to be on the deed? Does this happen (me no longer being liable) as soon as it forecloses? Is this when lender takes posession and their name is on the deed?

Asked on December 23, 2011 under Real Estate Law, Maryland

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Good question. So long as legal title of the surrendered property that you have written about is in your name, you are technically responsible for all aspects of owning the property including but not limited to property taxes, the monthly mortgage and insurance.

If you do not pay the property taxes, a tax lien will be recorded upon the parcel. You are not personally responsible to pay the property taxes in the end on the property. As to aspects of owning the property that you have written about and whether you should continue paying for such, I recommend that you consult with your presumed bankruptcy attorney on this issue.

If you have not been servicing the property's debt load, there is a good chance that the lender may have looked into and actually paid insurance for the property that you may not have paid for it.


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