HO Insurance Refund

[Tifosi]

We stopped paying our mortgage in April '09 and vacated in Oct. '09. Chase kept paying the taxes and renewed the insurance in January '10 creating an escrow deficiency which was all added in to the foreclosure amount.

The property was up for auction at the Sheriff's Sale on May 27 and a Sheriff's Deed was recorded on July 21. The property is now in the hands of Fannie Mae. I called and cancelled the HO Ins to remove the last remnant of my name from the house. I asked that the refund be sent to the Mortgage Co. but it is policy that the insured gets the refund.

What do I do with this check? Chase paid it as the servicer but the deed was issued to Fannie Mae.

[misty95]

We stopped paying our mortgage in April '09 and vacated in Oct. '09. Chase kept paying the taxes and renewed the insurance in January '10 creating an escrow deficiency which was all added in to the foreclosure amount.

The property was up for auction at the Sheriff's Sale on May 27 and a Sheriff's Deed was recorded on July 21. The property is now in the hands of Fannie Mae. I called and cancelled the HO Ins to remove the last remnant of my name from the house. I asked that the refund be sent to the Mortgage Co. but it is policy that the insured gets the refund.

What do I do with this check? Chase paid it as the servicer but the deed was issued to Fannie Mae.

Does anyone know the answer to this? I have a similar situation.

I surrendered my home in Chapter 7. The bank had already started foreclosure proceedings when I filed. 3 weeks before the foreclosure sale happened, the mortgage servicer paid the homeowners' insurance renewal (which was due just 3 days before the foreclosure sale date). The insurance had previously been paid out of my mortgage escrow account. There was a small balance left in my escrow account when I stopped paying the mortage. It was enough to pay the insurance, but not the property taxes, too. They also paid the property taxes, putting the escrow account in the negative.

After the foreclosure sale happened, I notified my insurance agent that I no longer owned the home. He cancelled the policy and said he was sending me a refund for the balance of the policy not used.

I received the check today. It is made out to me. Is this mine to cash? Or will the mortgage company come after me for the refunded amount once they are notified by the insurance company that the policy has been cancelled?

Does anyone have any experience with this? Thanks for any help.

[Flamingo]

Both of you should contact the attorney who handled your Chapter 7 as to what to do with the check to avoid any problems.