Unless state law provides that the mortgage company has a legal responsibility to the HOA, it is the homeowners responsibility to communicate information about a bankruptcy to the HOA. Mortgage companies have plenty to do without this added responsibility. Hope this perspective helps!
Chapter 7 bankruptcy eliminates your personal responsibility on the mortgage loan. As a practical matter, this means bankruptcy can eliminate any potential for the lender to collect a deficiency judgment against you. The lender's only recourse after the bankruptcy is to foreclose on the property.
Mortgage and Other Secured Debts Will be Discharged Mortgage debts, and other secured debts–such as those on vehicles–are also dischargeable in bankruptcy in most cases. This means that the obligation to pay on the underlying mortgage (or other secured) debt is extinguished if you receive a discharge in bankruptcy.May 28, 2013
Creditors might like you to notify them of your future bankruptcy filing so they can ramp up collection activity or talk to their attorneys. But, you're not required to notify creditors you're filing bankruptcy prior to filing bankruptcy.Jul 22, 2020
Yes, if your mortgage lender goes bankrupt, you do still need to pay your mortgage obligation. ... If your mortgage lender goes under, the company will normally sell all existing mortgages to other lenders. In most cases, the terms of your mortgage agreement will not change.
Yes, you can walk away from your home. Just be aware that sometimes taxes or HOA dues can still be held against you, but the mortgage cannot. You can also report your mortgage payments to the credit agencies.Sep 23, 2013
Do they freeze your bank account when you file Chapter 7? Generally, no. Especially if the full amount in the account is protected by an exemption. Some banks (most notably, Wells Fargo) have an internal policy of freezing bank accounts with a balance over a certain amount once they learn about a bankruptcy filing.Feb 6, 2021
While your trustee will most likely periodically check all of your financial accounts such as your bank accounts, in order to ensure that you have enough money to continue making your bankruptcy payments, they are not permitted to touch any of your funds, other than the funds which are allocated for your secured loan ...
There's no guarantee that threatening to file bankruptcy will stop annoying creditor calls. The only sure fire way to use bankruptcy to accomplish this is actually to file a case. That's when an order called the "automatic stay" goes into effect and prohibits your creditors from making any attempt to collect a debt.
However, what happens when you file a Chapter 13 bankruptcy case? A Chapter 13 bankruptcy is intended to restructure or reorganize your debt. Chapter 13 allows a homeowner who has fallen behind in mortgage payments to catch those payments up over 3-5 years along with the payment of ongoing monthly mortgage payments.
The collateral is, of course, the home. The escrow account is governed by the Real Estate Settlement and Procedures Act (“RESPA”). The mortgage contract and other documents set out the terms of how the escrow account is to be treated. RESPA contains the rules that tell a mortgage company how it is supposed to treat your money ...