Central Florida - Chapter 7 Discharge 11/11 - Lis Pendens - Vacancy Insurance

[deedeecfl]

Our Chap. 7 was discharged back in November 2011. A lis pendens was filed, a summons served and response due date was 4/24/12. We did not respond since the mortgage was surrendered (not reaffirmed) in the Chap. 7 and we do not want the house. We moved out a while ago and had notified the bank at that time via certified mail what was happening (months and months ago). The property taxes and the original hazard insurance are paid through escrow acct and have continued to be paid that way by the bank. I have a copy of the renewed policy's dec page and it covers everything that it covered when we lived there. Now the bank is stating that they want to know if our policy includes vacancy coverage and if we do not have it, they will be forced to obtain it themselves on our behalf and charge us for it. If we have an escrow account, the account will be charged.

Anyone encounter this and if so, how did you handle? Ironically, they also notified us that they may enter the property and may winterize and maintain the heat in the property. Uh--it was 88 degrees here today.

[tobee43]

it's getting sticky with these banks. you are NO longer financially responsible for anything to do with the house, although you are still the legal owner until the deed transfers. all foreclosure fees and costs including the taxes and insurance they cannot come back and charge you for. with the exception of an HOA fees, costs, or back fines.

i would just send them a copy of your discharge and close. i know chase took over our property within a month of us vacating it, that was over 4 years ago. i know with us, chase has an umbrella insurance hazard policy and as far as liability goes we (we live in florida now, however the property we surrendered was in nj) we had posted over 50 no trespassing signs, violators will be prosecuted, enter at your OWN risk.....took pictures and in that state posting signs is key. if the house burns the bank has it covered and our postings cover anyone entering at their own risk if they get injured since in that state it could take 20 years to change deed/title to new ownership.

[jst4f]

This sounds like a "one size fits all" letter. Respond via letter return reciept that your responsibility for the property was discharged in your BK. Clearly state that you do not owe them for vacancy insurance. Also make it clear that you are not in the house. (I know it is obvious given the letter but they sent a form letter so it wouldn't hurt.). Some send copies of their file and discharge paper, but I just send the BK number. So far that has been enough for third party collectors and I assume it will work for banks. Saves on postage.