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Dealing post discharge with non-foreclosed properties
It's becoming an increasingly big problem in what should debtors do
with real estate they are "surrendering" in bankruptcy but where the
lenders won't foreclose (or delay it indefinitely). The reason this
is an issue is that the debtor(s) is still on the hook for certain
fees that accrue post discharge, such as HOA fees, violations of
ordinances, and even liability issues for which insurance has lapsed
(e.g. slip and fall on the property).
David Tilem created Dead End Properties, a corporation, to deal with
this issue, so debtors have an entity to transfer title to so they
(theoretically at least) won't have further obligations on the
property. He has authorized me to pass on the following
requirements for using this service. Note, this is only for real
property located in California:. The following should be provided
to David in advance of any deed transfers:
1.Address (sometimes I have to figure this out from the legal on the
deed and it is annoying)
2.keys, alarm codes (I had one where the guy locked the keys inside
3.$280 (someone has to pay the annual franchise tax of $800/year,
the recording fees and some modest legal fees)
4.deed in recordable form -- we will pay the recording costs from
the $280
5.secured creditor information -- nothing more than what you include
on Sched D
6.insurance information, i.e. name, policy # (if any) and expiration
date
7.emergency phone number for transferor (I will probably never call,
but just in case..... such as if the deed is rejected by the Recorder)
I can live without #5, 6, but they are helpful.
Please feel free to share this on the cdcbaa listserve.
*David A. Tilem*
Law Offices of David A. Tilem
206 N. Jackson St., #201
Glendale, CA 91206
Tel: 818-507-6000 * Fax: 818-507-6800
www.TilemLaw.com
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this
means at
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