Four Reasons to Get Rid of that Vacant Property

mortgage-issues-massachusetts-culik-lawProperties can be abandoned for a variety of reasons. Getting an abandoned property out of your name, though, can be especially difficult if the mortgage balance is higher than the property value. This type of an abandoned underwater property is more than just a nuisance, it can be a legal problem waiting to happen. Some of these concerns are explained below.

Insurance Liability

Leaving a property won’t automatically transfer title back to the bank. As a result, you will continue to be liable for any damages or injuries sustained on the property. If somebody walks on your lawn and breaks their ankle, you’ll want to make sure that your insurance policy is still current.

Credit Reporting

If the mortgage on your vacant property isn’t being paid, negative information will continue to appear on your credit reports. This could impact current credit offers as well as your ability to obtain future credit.

Property Taxes and Association Dues

You will continue to be liable for real estate taxes and association dues on abandoned property you own. The bank might pay these amounts even if your mortgage payments are behind, as property tax liens and some association liens have priority over a mortgage. However, banks are not necessarily required to pay these.

Maintenance

You are also responsible for maintaining abandoned property under city code enforcement laws. If you fail to do so, you may be personally obligated for the repairs.

For these reasons, you should always speak with an experienced attorney to develop a strategy for getting abandoned underwater property like this out of your name. Often, this can be accomplished by a short sale, deed in lieu of foreclosure, or a bankruptcy.

Please contact us  for a complimentary consultation to review your particular options.

CULIK LAW PC

CULIK LAW

CULIK LAW is a Massachusetts based law firm who believes in doing good work in our New England community to help individuals Champion Your Rights. We help clients with debt, credit reporting, mortgage, consumer protection, employment, and personal injury. If your rights are being violated or you need a new beginning, we want to hear about it and find a way to help.