Bankruptcy Mortgage Modification Program: I want to Surrender Property #9

A borrower might have a real need to surrender real estate to the lender.  Perhaps the owner has moved from the home or has investment property that is vacant.  The owner can file a Fort Lauderdale bankruptcy to discharge  the mortgage debt.  But association fees owed after the case is filed remain an ongoing obligation as long at the debtor still owns the property.  The debtor might also be subject to liability if someone slips and falls or for code enforcement violations.

The debtor in a Chapter 13  bankruptcy in South Florida can use the new mandatory mediation procedures to attempt to have the bank accept a deed for the property.

The mandatory mediation procedure can also be used in Miami Chapter 7 bankruptcy solely for the purpose of surrendering property.  The mediation procedure does not apply to trying a Broward mortgage modification in a chapter 7.

 



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