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Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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I surrendered my home (in Maryland) in a Ch 13 bankruptcy in

Customer Question

I surrendered my home (in Maryland) in a Ch 13 bankruptcy in 2010. Background: I work for the Army and moved with my job (under the Base Realignment and Closure Commission of 2008) to Texas. My home had dropped over $100K at the time of the move and a bankruptcy lawyer in TX recommended a Ch 13 was our best option. Fast forward to 2016: We were discharged from our Ch 13 exactly 1 year ago (we made all of our payments on time) and are trying to qualify for a mortgage in Texas. We have found out that our home in MD never foreclosed and I was told we need to do a Deed in Lieu to release us from the property. There are liens against the home (from the HOA) and I just got a bill from the county for taxes owed. The bank is trying to settle on the HOA liens and I am going to approach them about the taxes too (not sure if we are also liable for the taxes??). My questions are 1. Are we liable for the taxes on the property in MD? 2. If we finalize the Deed in Lieu with the bank will I be penalized twice for the property on my credit (for the Ch 13 and the Deed in Lieu)? 3. If I am penalized for the Deed in Lieu will it be back dated for when we surrendered the property in the Ch 13 (2010)?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  DrakeLAW replied 1 year ago.
Hello and welcome to JustAnswer, my name is ***** ***** I am an attorney. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. This question and response may be viewed by other parties as noted in JA’s terms of service. By continuing, you confirm that you understand and agree to these terms. By continuing, you confirm that you understand and agree to these terms.1) You should not be personally liable for the property taxes but you would be personally liable for the POST-PETITION HOA fees but I would think they would have been paid along with your plan. The PRE-petition HOA fees discharged as to you personally but they still have a lien on the property. 2) You will not be penalized twice on your credit if you do a DIL but you may need to monitor it and ensure it is correctly reported. The tradeline for that loan should state the status as "IIB" (in bankruptcy). I would be quite surprised though if the bank does a deed in lieu given all those liens, because if they foreclose they can wipe out the HOA liens I believe. But if they will, hey, take them up on it. 3) No penalty, the "damage" on your credit goes until your discharge date and from that date no pre-petition debts can be reported as anything other than "IIB". Anything further?