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 PC is a consumer protection law firm helping individuals Champion Your Rights. Based in Boston, Massachusetts and Charlotte, North Carolina, we help clients with debt defense, mortgage litigation, foreclosure defense, consumer protection, and employment related matters. We have gone against the largest banks and debt collectors on our clients' behalf, saved hundreds of homes from foreclosure, and have settled thousands of debts for significantly less than owed or had the debt dismissed altogether.