Vacant House Damaged in the middle of Chapter 7 conversion to 13

[dontburnthep]

What a mess.

We have filed a chapter 7, and the UST has filed a motion to dismiss for various reasons. We do not plan to fight the motion, again for various reasons, and intend to let the case be dismissed and regroup, either refile a 7 or a better planned 13. Our case includes out previous home, that we have surrendered. We vacated in November and have been happily living in a rental. We went to check on the property and found that someone had had a car accident, quite a bad one apparently, as there is a massive hole in the foundation and the entire thing has shifted. Inside, the walls are cracked and the windows are damaged. The floor feels messed up as well but it's covered with carpet so we can't be sure of the damage. Our home owners insurance is still in effect because it is paid twice a year and had already been paid when we stopped paying our mortgage. I do not know anything about the person who caused the damage aside from that he was taken to the hospital and then to jail.

I know we are responsible for the damage because the property is still in our name. We had hoped to pursue a DIL with Citi once our 7 was dismissed. Even before this, we couldn't possibly get what we owe on the property but now.... the deficiency just got much bigger. I am not even certain that it CAN be repaired without massive renovation.

I don't even know where to start.

[discouraged]

Wow - this is a tough one and I hope the gurus jump in. Do you think your insurance would pay for the damage? Or - the drivers insurance might have to kick in - assuming the person had some. This owuld have happened whether you were there or not so I would think your insurance would be responsible. But - I have no idea.

[panda]

Depends on the homeowners insurance still being in effect due to the house being vacant. Most insurance will cancel as soon as the home is vacant for 30 or 60 days depending on the insurer, and it is retroactive, even if you paid them but did not tell them the home was vacant. Hopefully the insurance is ok on this home, but it is doubtful from everything I have read. I am planning on telling our mortgage bank as soon as we move to put mortgage placed insurance on our home, as our homeowners insurance will be canceled due to our home being vacant.

Maybe things are different where you live, I sure hope so.

[Flamingo]

Since the house is still in your name, you are responsible for the damage. I would certainly be on the phone with your attorney about this to see what you should do.

[dontburnthep]

Complicating the matter- our attorney is worthless and is only doing the bare minimum at this point because we will not commit to a 13 conversion. He hasn't requested additional pay, which we would agree to since fighting a motion to dismiss is additional work, he just refuses to do anything.

We did not notify the insurance company that it was vacant.

So, will this essentially increase any deficiency that we owe after the bankruptcy is dismissed/before it's refiled and the foreclosure process completes? We were already looking at at least 20K in deficiency and after viewing the home again today, think there is at least 15-20K in damage. One whole corner of the house is shifted at least an inch. I've honestly never seen anything like it.

[panda]

Please keep us posted on what happens with this. I am hoping you can get things worked out ok.

[dontburnthep]

Pretty crazy situation!

If we had any doubts about walking, they're gone now. It was my kids rooms that were hit.

[olivies]

Did the driver have auto insurance? His property damage coverage should also cover your costs, up to the limits of his policy. Your homeowner's policy will likely expect you to seek payment thru the auto policy first or they can choose to pay and subrogate from the auto insurance themselves. If the guy was taken to jail, there must be a police report which you are entitled to a copy of that will have his auto insurance info.