?? about rental foreclosure property damage

[midwest]

Our BK was discharged in March of this year, we had a rental property included with our case that we received notice In REM Complaint on note and to Foreclose Mortgage on June 7, 2012. Yesterday a tree fell on the house and caused substantial damage. I kept the insurance on the house current. Has anyone had any experience with this? I'm not sure if I should proceed with repairs and file the claim? I have not spoken to the bank since we stopped paying and the BK went through. We live in Michigan and the house is in Indiana. The tenant was there and received minor injuries.

My question is about our best interest.... The insurance value more than covers the mortgage balance, but at this point we're not sure if its a total loss, and we're not liable for the balance due to the BK.

Thanks so much for any advice!!!

Melissa

[helpmeout]

You may not be responsible for the mortgage anymore, but that doesn't mean that you get to keep the insurance payout. If it is set up like my insurance was, a payout that big is going to go to the bank, anyway. And once the bank finds out about the damage, they will file a claim. And, yes, they can file a claim under your insurance. What they can't do is come after you for any difference.

[despritfreya]

Place the claim to protect yourself from the renter's claim for injuries and notify the lender.

Des.

[midwest]

Thank you so much!!