Tuesday, November 13, 2012

Bankruptcy Leaves Many Homeowners And Investors Accountable For Empty Homes

If property owners, landlords and real estate investors believe they can file bankruptcy and leave their houses behind with out a worry, they ought to think again. Bankruptcy wont' let property owners off the hook for maintenance along with other real estate liability.

Take notice that personal bankruptcy is not that easy but company bankruptcy is a whole lot simpler. With a lot of techniques like pre pack liquidation, administration and insolvency, companies hardly face that much trouble really. Another client base for real estate servicing businesses, like foreclosures cleaning businesses and lawn care companies, is fast-becoming homeowners like these -- those who have surrendered their own houses via bankruptcy, but who have not yet been foreclosed on by their finance companies. Read on to learn more.

Consequences for Homeowners and Investors Walking Away after Bankruptcy

What are the effects when a homeowner or landlord walks away right after filing bankruptcy? The consequences can be new debt owed by means of county fines for property neglect, and worse, new legal responsibility in the form of law suits if someone will get hurt on the property.

The municipalities issuing property violation penalties will fine the property owner of record listed with their county office. And until a foreclosure gets the owner's name off the record, the bankruptcy filer will still be on the hook.

What Good is Bankruptcy if the Landlord or Home buyer Still Owns the House after Bankruptcy Discharge

A bankruptcy and successful discharge means that homeowner is absolved of having to pay the mortgage debt. It does not excuse them from property upkeep, taxes, homeowners' organization fees, and similar responsibilities, for the house in question.

When the lender, finance company or mortgage company forecloses on the property, the home buyer will no longer own the home.

Client Source for Foreclosures Cleaning Business Owners Another client source for real estate service companies similar to foreclosure clean-up business services and yard and lawn maintenance companies is home buyers and landlords who have (1) gone through a successfully discharged bankruptcy, but (2) have not experienced a successful foreclosure.

Once property owners realize they are still the liable parties, they frequently move back in and also live for free until the lender foreclosures. Or, they rent out their homes to cover property maintenance costs and prevent vandalism, crime and harm that occurs due to a home sitting empty.

The homeowners and landlords usually seek to hire home maintenance as well as foreclosure cleaning business services for lawn care, home repair, debris and hauling, and similar foreclosure cleanup duties, to get their homes in shape for move-in or for the rental market.

To get a better understanding about this, check out Finance7.

1 comment:

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