Cancelled homeowners insurance- part 2

[Dizzy]

Well, here's another fly in the ointment. We're waiting for our discharge and are surrendering the house. No foreclosure proceedings have been started at this point due to the stay. They hadn't begun before we filed even tho' we hadn't paid our mortgage in over a year. Today we received a refund check for the last premiums paid less the days covered before it cancelled due to vacancy. It's made out to us but the premiums were paid by the mortgage company and the fees had been included in our mortgage payments. Is this our money or the mortgage company's money? Is research into how much money was in our escrow account at time of payment needed to see if our escrow paid or if the mortgage company paid and created an escrow deficit? I have a call in to my attorney but no word yet. She's been having a hard time getting any return communication from them about other matters so I'm expecting more delays (not her fault). Needless to say, we sure could use it.

[idainc]

It's yours.

[BobMango]

I had the same situation, cashed the check with no problem.

[Dizzy]

Thanks for the replies. We spoke with the mortgage company and the money is indeed ours to keep. Woot woot.

[Dizzy]

Well, it appears that Chase is trying to get the ball rolling on taking possession of the house and starting foreclosure. I received some documents from their attorney and it was a copy of the motion to the BK trustee to lift the stay. Evidently someone is maintaining the lawn, too. I'm glad. I just want this over and done with.

[idainc]

I've given Chase a letter essentially surrendering the house. We're in CH. 7 and they assured me they would change the locks etc. That was May 7th and I spoke ot them a few weeks ago and they never got the letter ( I have the certified mail reciept). They again said they would turn on the water and change the locks and I just got a complaint about mosquitos in the pool fromt he county. I do not have keys to the property and I'm sort of in limbo. This thing is slated for a trustee sale but in the interim I am a bit confused as to how to handle this.

[Morgon64]

Wow! A year without paying and no foreclosure started?

I had to file Ch 13 4 years ago because Countrywide (damn them to hell!) started foreclosure on me when I was just 60 something days late...not only that, but they had a partial payment for one of the months, just not enough for a full payment. Not even a huge mortgage, either. I think I was behind a total of about $1500. I was just about to be able to pay it, too...waiting on a tax refund!

I got served and not only that, they had tacked on $2500 already for lawyer's fees.

My attorney couldn't believe it.

[Dizzy]

Morgon64, yes, and it's happening all over. The place was falling apart and there was just not enough income in our household (layoff) to make the payments or maintain it, and they wouldn't work with us on a loan mod because of the loss in income. I'd read so much here about people getting screwed after they'd paid all this trial money and decided not to become part of that statistic, but now I'm part of the foreclosure and BK statistic. At least I didn't throw away a bunch of money in the last year. I do feel guilt tho'.

[mrskal]

What happens when it is not insured by you then, does the mortgage company take over and get a policy? I would love to drop my insurance once I actually move, but have been told to keep it untill it is actually forclosed.

[idainc]

I opted to keep the policy till foreclosure. If there's a slip and fall or other liability issue any bank policy wont cover you yet you're the owner of record. And after a BK it doesn'nt make sense. I did however call the insurer and pare down the coverage as muchas possible and get the refund checks which helped out in a pinch.

[Dizzy]

I don't think you all understand. My insurance dropped me, not the other way around, and although I've been trying to find a company to insure it while it's vacant, nobody will.

[mrskal]

I understood, I was curious if the bank would pay for a policy, seeing as they have an interest in the house as well.

[SMinGA]

In general - yes, its common for your insurance co to cancel the policy once they know the house is vacant. The standard policy is NOT going to cover a vacant house.

The mortgage company will buy a policy if they are notified of a lapse in coverage, and bill you. If you file bankruptcy however, this is something else that gets discharged.

I understood, I was curious if the bank would pay for a policy, seeing as they have an interest in the house as well.

[Dizzy]

I understood, I was curious if the bank would pay for a policy, seeing as they have an interest in the house as well.

I think that's why they're in such a hurry to take it back now. If they're going to have to pay insurance on it, I mean. They know they can't get the $ from me now since I'm in a Chapter 7.