Rentals - Homeowners Insurance/Property Taxes

[akame5150]

I have some rental property I am surrendering in my chapter 7. I have 9 days left out of my 60 day waiting period. What do I do about the homeowners insurance and property taxes on the rentals? I think the property taxes go with the property, however what about the insurance? I escrowed all of my taxes and insurance. Now that I have not been making my payments, the lender statements continue to say that I will have an escrow shortage when it is time to pay. Is this my concern any more?

I was told not to cancel my homeowners insurance until the property is taken out of my name, however I don't want to pay for it any longer.

Thanks for all of your help.

[soleprop]

everything i've read indicates you maintain insurance on the properties or else will be liable for any and all damages to the properties. better to pay the ins. don't you think.

[relief13035]

Akame - our story is very similiar to yours.

We have 12 days left in our 60-day waiting period and we are surrendering 2 rental properties. We stopped paying everything in September. I know it might be a gamble not paying insurance, but we were tapped out of funds.

One rental still has a tenant and we told her to stop paying rent and to save up until the bank takes the house back. I can't wait to be out from the landlord nightmare.

[akame5150]

Thank you for the replies. I definitely appreciate your help. I think I will go ahead and keep the insurance at least for a while. I did read in some other forums that we can reduce some of the coverage and keep things such as personal liability only as well as increasing the deductible. This will drop the annual premium, yet still allow for some coverage if someone hurts themselves on the property.

I will call my agent and see about that possibility. Relief, I sent you a PM......