We just filed last week from being in a ch. 13 for four years to a ch. 7. We are finally giving up the house (which we should have done a long time ago). My first question is we have extra money in our escrow with the mortgage co. Will we get any of that back since our taxes are paid for the rest of this year? Also, our house insurance runs out at the end of this month and we are not renewing. (We just moved out and have notified the bank) Will the lender take the money out of our escrow and put a forced placed insurance on the home? Thanks.
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New beginning -
The bank will place insurance on the house to protect itself. But, it won't protect you for liability related to the property. As the owner of record, you can be held liable for any injuries incurred by somebody while on the property or for damages to other property caused by conditions on your property (a tree falling on the neighbor's house or car, for example). If you are concerned about that, you should contact an insurance agent about getting liability insurance.
I don't know what will happen with the escrow account.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!
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