Are we liable?

[DaytonMomof2]

What is the name of your state (only U.S. law)? OH

We recently went through a chapter 13 bankruptcy. We were able to keep our home. Our vacant rental properrty, however, we gave up.
Even after the bankruptcy, we continued to go over to the other house once every 10-12 days to mow the lawn, etc. A couple months ago, when we went over, we found a sticker on the door saying the property was now under the protection of some property management company. It said they would be changing the locks. So we made one more trip over and retreived the mower and stuff. We haven't been over there since.
We also cancelled our homeowner's insurance at that time.
Yesterday, we received a letter from the mortgage company saying they found out we had no insurance on the property and they force-placed a policy covering only the structure. I understand this is standard for properties with mortgages. But since our bankruptcy states we will be paying them $0 on their claim, we don't actually have a mortgage with them anymore.

Here's my question: If someone was to trip over a tree root or something, are we liable as if we still own the house? Do we need some kind of liability insurance?

The bankruptcy was over 7 months ago.

 

[LdiJ]

What is the name of your state (only U.S. law)? OH

We recently went through a chapter 13 bankruptcy. We were able to keep our home. Our vacant rental properrty, however, we gave up.
Even after the bankruptcy, we continued to go over to the other house once every 10-12 days to mow the lawn, etc. A couple months ago, when we went over, we found a sticker on the door saying the property was now under the protection of some property management company. It said they would be changing the locks. So we made one more trip over and retreived the mower and stuff. We haven't been over there since.
We also cancelled our homeowner's insurance at that time.
Yesterday, we received a letter from the mortgage company saying they found out we had no insurance on the property and they force-placed a policy covering only the structure. I understand this is standard for properties with mortgages. But since our bankruptcy states we will be paying them $0 on their claim, we don't actually have a mortgage with them anymore.

Here's my question: If someone was to trip over a tree root or something, are we liable as if we still own the house? Do we need some kind of liability insurance?

The bankruptcy was over 7 months ago.

Mortgage companies have been very slow lately about actually taking official possession, via deed, of foreclosed homes and homes given up in bankruptcy. However, if the bank has placed the home in the hands of a property manager, that would seem to indicate that they have officially taken possession. If so, you could not be held liable for anything that happened on the property.

You are probably going to want to verify that however. Your might check with the county agency that handles deeds for your county and see who is showing as the owner of the property.

 

[justalayman]

Do we need some kind of liability insurance?

Oh ya and you need to make sure the home is covered by insurance for damage as well. Although you do not owe the mortgage loan, since it is in your name and the bank has a security interest in it, if your negligence allows for a loss of value, you can be held liable for that loss to the bank.

 

[DaytonMomof2]

Oh ya and you need to make sure the home is covered by insurance for damage as well. Although you do not owe the mortgage loan, since it is in your name and the bank has a security interest in it, if your negligence allows for a loss of value, you can be held liable for that loss to the bank.

The letter received from the mortgage company states that they have placed hazzard insurance on the property. They are adding the premium amount to the amount our payment would be if we were still paying it. So I am not worried about this at this time.

I just keep thinking that having a sticker on the front door is just announcing to 'the world' that the house is vacant. Someone's going to decide they want to live there rent-free. (squatters) And if they get hurt, I can just see them thinking they have the right to sue us.

 

[LdiJ]

The letter received from the mortgage company states that they have placed hazzard insurance on the property. They are adding the premium amount to the amount our payment would be if we were still paying it. So I am not worried about this at this time.

I just keep thinking that having a sticker on the front door is just announcing to 'the world' that the house is vacant. Someone's going to decide they want to live there rent-free. (squatters) And if they get hurt, I can just see them thinking they have the right to sue us.

Again, its critical to determine in whose name the property is currently deeded. If its out of your name, you no longer have any potential liability.