How Long Can You Stay In A House That Is Being Surrendered?

by Josh Levy 12. June 2011 23:17

Often, a bankruptcy filing can be used to get out of an unaffordable mortgage.  But how long can you remain in a house that is being surrendered as a part of a Chapter 7 or Chapter 13 bankruptcy filing?  The answer is somewhat suprising.

Here is a link to a current news article about the current pace of foreclosures:

Due to the current volume of foreclosures and distressed properties, mortgage companies are moving rather slowly in proceeding with foreclosures in state court and taking possession of foreclosed properties.  Here is some good news:  If you file for bankruptcy and need to surrender your house as a part of the bankruptcy, you can remain in the house without paying the mortgage until you receive a notice to vacate following the completion of the state court foreclosure. 

There are some requirements to staying in the house.  You must keep the house in good repair and maintain insurance and utility coverage on the property.  You cannot cause any damage to the interior or exterior of the property.  You are also required to pay the ongoing homeowners' association dues if the house is part of a homeowners' association.  However, you are not required to move immediately, which can save you some money on a housing or rent payment, often times for several months.

To schedule an appointment to discuss a potential bankruptcy filing, please contact Levy Law Offices at (919) 846-0125 or via e-mail at

Add comment

  Country flag
  • Comment
  • Preview