If mortgage was escrowed who pays insurance and taxes during the foreclosure process?

[kcfaninin]

We filed Chapter 7 in January 2010 and did not reaffirm our mortgage. We applied for a loan mod, but refused to make the payments because they were higher then our original mortgage payment. We are currently $100,000 under water. We are just buying time until we have to move out.

We have not made a payment since August 2009. Our taxes and insurance were escrowed. Who has been paying our property taxes and homeowner's insurance all these months? How do we know our home is insured for the dwelling and the contents?

We paid our homeowner's insurance monthly through State Farm until Chase had it escrowed back in 2009. I want to make sure we are covered in the event of a fire or something. Will we owe any delinquent amounts? Should we let State Farm know our intentions of not keeping the property or will Chase notify them if a foreclosure takes place?

Thanks

[AlmostAmos]

My .02 - We are in the same situation, and I am also with State Farm. I went to SF's website & saw that my home owners insurance policy is up for renewal this Nov. So, I called SF & told them that I wanted to be put on monthly billing instead of having it paid by my lender. I told them I wanted "more control over my finances". So, my agent did it & I started paying monthly. They won't get any nastygrams from the lender and *I* know it is paid & the contents are protected. SF WILL wack your insurance if the home has been foreclosed on - or if it is empty.

The taxes are not being paid but that is not my problem. The county will put a lien against the structure & whoever purchases it can worry about paying them. Oh, and we're paying our HOA fees ourselves also.

[tobee43]

We filed Chapter 7 in January 2010 and did not reaffirm our mortgage. We applied for a loan mod, but refused to make the payments because they were higher then our original mortgage payment. We are currently $100,000 under water. We are just buying time until we have to move out.

We have not made a payment since August 2009. Our taxes and insurance were escrowed. Who has been paying our property taxes and homeowner's insurance all these months? How do we know our home is insured for the dwelling and the contents?We paid our homeowner's insurance monthly through State Farm until Chase had it escrowed back in 2009. I want to make sure we are covered in the event of a fire or something. Will we owe any delinquent amounts? Should we let State Farm know our intentions of not keeping the property or will Chase notify them if a foreclosure takes place?

Thanks

same here...and we also had chase....

CHASE pays....NOT you.

well, if you're still there i'm not certain who would be responsible since, if your surrendered or they are foreclosing...you'd actually i guess would be technically be squatting....

we were going thru loan mod with chase...for actually it was over a year...and ended up leaving before even getting a straight answer!

we filed bk...listed the mortgage and also that we were surrendering the property...we had already vacated tho...we were NOT living there. i know our home owners company contacted us when we canceled our auto..( we had the same co.) and they asked what was happening with the house...i told them after 33 years as per our atty...we were locking and leaving it..(not really...i emailed the chase loan mod officer and told him), and the insurance co., said well, you are pd through the year, but we are going to send you a refund...i said you can't do that...chase now has the house...the insurance co. rep said...well, chase will be charging the ins. and maintenance fees into your foreclosure fees..so they suck and we don't want you to get charged twice...cool....they sent us a nice refund.

chase now called our bluff so it's their house...

however, we were already in foreclosure at the time of our discharge...i don't really know, and it's going to depend on how your state handles it...exactly if you would be responsible for anything.

some people get companies to cover them...while they are still there...but what's the point?

[kcfaninin]

My .02 - We are in the same situation, and I am also with State Farm. I went to SF's website & saw that my home owners insurance policy is up for renewal this Nov. So, I called SF & told them that I wanted to be put on monthly billing instead of having it paid by my lender. I told them I wanted "more control over my finances". So, my agent did it & I started paying monthly. They won't get any nastygrams from the lender and *I* know it is paid & the contents are protected. SF WILL wack your insurance if the home has been foreclosed on - or if it is empty.

The taxes are not being paid but that is not my problem. The county will put a lien against the structure & whoever purchases it can worry about paying them. Oh, and we're paying our HOA fees ourselves also.

We didn't have a choice about escrow when we took out the loan with Chase. They made us give up our monthly payments to State Farm. I doubt we will be able to take over the payments ourselves. I want to avoid having State Farm know our situation. We are friends with the agent and it would be quite embarrassing.

How can we find out if we still have coverage on the contents of our home? I understand we will have to keep insurance as long as the title is in our name, but shouldn't it just be for the contents and not the dwelling itself since we surrendered the home anyway?

[flaguy]

get a renter policys for contents........should be like 300 bucks or so..........

once the bank puts forced place insurace on the property contents won't be covered

[kcfaninin]

get a renter policys for contents........should be like 300 bucks or so..........

once the bank puts forced place insurace on the property contents won't be covered

I checked our State Farm account online and it says $0.00 amount due to Chase and the policy is current. Should we notify State Farm that we are letting the home go? I'm sure they will find out eventually.

I am a bit confused on exactly how it works. The policy is through State Farm, but is Chase paying State Farm and we are SUPPPPOSED to be paying Chase through our monthly payment? If so, why would Chase still be paying State Farm when we surrendered the home and have not made a payment for 14 months? If the policy is in efffect, with no changes made by us, can we assume the contents are covered too?

[flaguy]

I would be cautious here...........on a couple of my short sales I had to sign all kinds paperwork and a couple of them discussed any escrowed items or insurnace proceeds would go right to them..............I give up all rights to anything

also just a thought if you filed and listed property(contents) at certain values it might be hard to make a insurance claim that differs from what you listed.........insurance companies love to find reasons not to pay.........

[drowning123]

Insurance companies do find out. I have Allstate. All along they've been billing me monthly, until after my 341 meeting, they wanted the entire premium upfront when it was time to renew. I never contacted them, so they must have been notified somehow. I'm still paying monthly whether they allow it or not. As to my property taxes, my bank, Aurora, escrowed my property taxes about 3 months before I filed for Chapter 7. I got an overdue tax bill about 2 weeks ago and ignored it. I haven't heard anything from anyone. Don't care either way as I'm surrendering that crappy house.

[tobee43]

Insurance companies do find out. I have Allstate. All along they've been billing me monthly, until after my 341 meeting, they wanted the entire premium upfront when it was time to renew. I never contacted them, so they must have been notified somehow. I'm still paying monthly whether they allow it or not. As to my property taxes, my bank, Aurora, escrowed my property taxes about 3 months before I filed for Chapter 7. I got an overdue tax bill about 2 weeks ago and ignored it. I haven't heard anything from anyone. Don't care either way as I'm surrendering that crappy house.

i'm with you drowning....although i'm NOT going swimming with you...

[drowning123]

Ahhh, tobee, I don't think I'm drowning as much as before, but I'm definitely hanging on to a buoy in the Atlantic Ocean somewhere. Rescue is on the way on 11/23. LOL.

[tobee43]

Ahhh, tobee, I don't think I'm drowning as much as before, but I'm definitely hanging on to a buoy in the Atlantic Ocean somewhere. Rescue is on the way on 11/23. LOL.

oh it sure is drowning...and the lets not go in the atlantic where u r...it's a bit on the cool side??

yes, you'll be having a merry holiday season...both you and joe! i hope it will come fast for you!

[drowning123]

oh it sure is drowning...and the lets not go in the atlantic where u r...it's a bit on the cool side??

yes, you'll be having a merry holiday season...both you and joe! i hope it will come fast for you!

Can't wait! Thanks, tobee!