Giving up house - what to do with keys?

[dawn1620]

We are in the process of a Chapter 7 and will be letting go of the house, we've not made a payment since August. We have already moved into another leased house and will have the rest of our stuff moved this weekend so the house will be totally empty.

 

We are having the utilities shut off by this weekend and will be turning off the water and gas at the main sources just in case.

 

What do we do with the keys to the house...I'm assuming they will change all the locks once the bank takes it over. We'll be keeping a set just in case and will be leaving all pertinent info (appliance handbooks, ect) in the house.

 

Should we call the bank and tell them what is going on or just let them find out when the ch 7 is officially filed which should be done this week or next at the latest. Basically we just want them to take it back now so it's out of our hands.

[Mayor]

I would call the bank and let them know all the details of your plans. Also the bank will change the locks and put a lockbox when they notice it's vacant if you don't call.

[caravaggio]

We are in the process of a Chapter 7 and will be letting go of the house, we've not made a payment since August. We have already moved into another leased house and will have the rest of our stuff moved this weekend so the house will be totally empty.

 

We are having the utilities shut off by this weekend and will be turning off the water and gas at the main sources just in case.

 

What do we do with the keys to the house...I'm assuming they will change all the locks once the bank takes it over. We'll be keeping a set just in case and will be leaving all pertinent info (appliance handbooks, ect) in the house.

 

Should we call the bank and tell them what is going on or just let them find out when the ch 7 is officially filed which should be done this week or next at the latest. Basically we just want them to take it back now so it's out of our hands.

 

Easiest thing to do is lock up and move, then have your BK attorney call to let the bank know you are abandoning the property. It's not as simple as just saying "Here, take my house back," since technically you are on the hook for damage, accidents, etc. until title transfers formally, and once the bank takes it back they have to deal with landscape maintenance, property taxes, etc. What you really seem to want is a deed in lieu of foreclosure, where you just sign it back to the bank and walk, which is fairly common these days, but involves paperwork and a runaround from the bank, as always. Having your BK attorney actually call them to let them know you are filing bankruptcy should get him access to someone who knows what they're doing at the bank.

Edited December 30, 2009 by caravaggio