foreclosure/13 ??

[jkb]

We have given the house to foreclosure in our chapter 13. I had a couple questions. Do we have to carry insurance on the house? We moved out in January and the bank hasn't done anything as of yet. We got a letter from them stating that they are aware that the house is vacant and we need to start carrying vacany insurance. Can they force us to do that? Our "regular" homeowners policy expires in November. How long does it take for the bank to take possession of the house? This seems to be taking a long time.

[lrprn]

We have given the house to foreclosure in our chapter 13. I had a couple questions. Do we have to carry insurance on the house?

Until the house is officially titled back to the mortgage lender, you are still the owner of record. If anything happens on the property, you will still be held legally responsible, even though you have surrendered the house in bankruptcy.

How long does it take for the bank to take possession of the house? This seems to be taking a long time.

Let's face it - your lender is in no hurry to take the house back because then they have to be responsible in case of an accident on the premises. Sorry - it really isn't fair. But it is typical nowadays for the legal ownership transfer back to the lender to take some time. Your lawyer can give you an idea of how long the foreclosure process is taking these days in your local area.

We got a letter from them stating that they are aware that the house is vacant and we need to start carrying vacany insurance. Can they force us to do that?

The lender can't force you to do it. But you would be wise to carry the absolute minimum homeowner's insurance on the house until the bank does finally move the house's ownership to them in case of an accident on the premises in the meantime.

[Ifonly]

Well, I'm doing it a little differently. I didn't cancel my homeowners but when they found out the house was vacant the insurance company cancelled the policy and was unwilling to insure it. Vacancy insurance is not easy to come by. I let them cancel, BofA was notified, they sent me an invoice saying that they'll bill me for the insurance costs of six bazillion dollars ($3,000 actually when I was paying $637). I showed it to my lawyer and his exact words where, "they can't get that bill to stick, it will be eliminated in the foreclosure". So now the home is insured on their dime even though I'm still the owner.

[thereshope]

Does anyone know with the foreclosure and banktruptcy ch7 and ch13, will your credit report show both a foreclosure and bankruptcy?