The Hits Keep Coming....

[Pizza]

Just about to wrap everything up and file, now I'm hit with another issue:

Was planning on keeping the house (current on payments since day one), but now the homeowners' insurance company has decided to cancel on me. I've been shopping around for insurance but haven't really gotten much interest. Some say my credit is too bad (obvious), others don't like the design - and I can't afford to fix it.

Should this delay my filing? I don't want to give it up because it's cheap ($760/month), but if I can't get it insured - or insurance goes up so high that I don't even want to think about it - I don't know whether to include it or not. Now what?

[AngelinaCat]

We ended up having to go with the State's Risk Insurance--we're in Florida--because so many companies have pulled out of Florida because of hurricanes. We have/had so many issues with our home and its location--in the potential insurers' eyes--that the only choice we had left was the state insurance (Citizens). And yes, some of the companies will not insure you if you have filed BK in the past five years.

Good luck to you!

[Pizza]

We ended up having to go with the State's Risk Insurance--we're in Florida--because so many companies have pulled out of Florida because of hurricanes. We have/had so many issues with our home and its location--in the potential insurers' eyes--that the only choice we had left was the state insurance (Citizens). And yes, some of the companies will not insure you if you have filed BK in the past five years.

Good luck to you!

Thanks for the info!

The real issue is whether to file or not to file (now) - if the insurance situation escalates to the point I'm forced to give the house up and rent, can I file now and decide this before the bankruptcy is closed, or do I have to reaffirm the mortgage from the getgo and stick with the decision to the bitter end?

It might help to add that we can afford the mortgage, the upkeep and utilities, just barely, but a sharp increase in payments could send us packing. We are at about the break-even point on the mortgage and home value.

[AngelinaCat]

You will need to decide that yourself. If you are *just* making it payment wise, and a hike in the insurance premium pushes you over the edge, you probably need to think about walking away and getting a TRUE *new start*. That is, wipe the slate clean, debt wise, and then start saving for another home down the road. I know it can be hard to leave a home, but if you don't have a lot of financial and emotional equity invested in it, you might be better served by finding a nice rental before you file.

That is just my thoughts for now..... My very best wishes go to you.

[albacore44]

i have got to say, what the hell does BK have to do with homeowners insurance ?? in my book its none of their business. your not borrowing money from them. its a damn insurance policy for gods sake. there ought to be laws to outlaw it

What are they gonna do when Obamacare forces everyone to buy medical insurance ?? disqualify anyone with bad credit ??

[LALADY]

My guess would be you're a risk...i.e., arson/house, dump your car/claim stolen, blah blah.

[secondtimer]

Try calling your state insurance commissioners office. They might be able to help.

[MSbklawyer]

My guess would be you're a risk...i.e., arson/house, dump your car/claim stolen, blah blah.

That's precisely what it is. Desperate people tend to do desperate things -- including torching their own houses for the insurance money. That's not to say that you would do such a thing, but you would be surprised how much more frequent house fires are among financially distressed individuals than they are otherwise.

[Pizza]

You will need to decide that yourself. If you are *just* making it payment wise, and a hike in the insurance premium pushes you over the edge, you probably need to think about walking away and getting a TRUE *new start*. That is, wipe the slate clean, debt wise, and then start saving for another home down the road. I know it can be hard to leave a home, but if you don't have a lot of financial and emotional equity invested in it, you might be better served by finding a nice rental before you file.

That is just my thoughts for now..... My very best wishes go to you.

Thanks for the helpful advice. We've been weighing our options.