Homeowners Insurance (I know, I know...again)

[Confused33]

Discharge 12/09 included home.

Moved out 8/09 after leasing property which is now vacant since 9/30/2010.

I cancelled the homeowners insurance as of 9/24 and received a refund. Bank of America sent me a letter demanding that I put insurance back on the home and stated that I was responsible for lender placed insurance if this was not rectified within 30 days.

I am quite confident that this is a form letter, but is this something that is outside of the parameters of the BK protection or I am free and clear of this charge that they have added to the discharged mortgage.

Thanks.

[AngelinaCat]

I sympathize greatly. But you probably are not going to like my answer. *Sigh*

If your name was removed from the deed concerning your property, you are free and clear.

If your name is still on the deed, and you cannot get it removed, then you are still responsible for the property and the bank, or mortgage holder wants you to carry full coverage on it.

The problem with that is that if you have moved out, and the property is sitting vacant, you cannot get homeowners insurance on it, no matter what. You *might* be able to get a 'dwelling' policy that will cover basic replacement in case of fire. But it will NOT cover you in case someone walks across the front lawn, discovers a hangnail on his big toe, and decides to sue you for it.

You *might* be able to get a homeowner's policy by lying and saying you are living there, but as soon as the insurance underwriters discovers that this is false, you will be canceled and could be blacklisted trying to get coverage elsewhere. Also, if an incident happens, and a claim is filed, the same condition applies.

I am so sorry to have to tell you that, but this is what we have experienced.

[AngelinaCat]

The bank can demand it, but I don't know what recourse they may have to enforce it.

Good luck to you in all this mess.

[Confused33]

Interesting. That seems to go against everything I read when I searched.

This mess was over in my opinion a long, long time ago. I could care less at this point. Bank of America can kiss my rump. LOL!

[AngelinaCat]

I know that feeling about BOA LOL!

I am just stating what I learned when trying to renew the homeowner's insurance on our own home in the wake of the 2004/2005 hurricanes in Florida. It was a nightmare.

Here is the thread that I weighed in on with a couple of 'rants':

http://www.bkforum.com/showthread.php?34621-Can-t-get-homeowner-s-insurance-after-BK&highlight=insurance+angelinacat

Thanks for your patience.

My best~~ AC

[Confused33]

You would think they'd have the best of the best handling their accounts that are in bad standing. The people I talk to on the phone make me want to scream. I get better service at McDonalds.

That being said, I was under the impression that once the discharge takes place I am no longer responsible for anything monetary that the lender has to say. That is what I've read all over the boards anyhow.

[debee]

I was looking over our loan docs the other day and read a clause that said if we did not maintain insurance the lender would get some and send us the bill.

But I wonder, since the OP has been discharged, has her contract with the lender been nullified in respect to insurance? Is the risk all hers now (in terms of being sued if someone gets stuck in the chimney or whatever) or can the lender send her an insurance bill?

[Flamingo]

Interesting. That seems to go against everything I read when I searched.

This mess was over in my opinion a long, long time ago. I could care less at this point. Bank of America can kiss my rump. LOL!

You won't be saying that if some neighborhood kid, real estate agent or someone else falls on the sidewalk or steps on that property. Better keep your fingers crossed cause as long as that property is in your name, it's your responsibility and without insurance, you can get personally sued and if you have already filed bankruptcy and have been discharged, you can't file BK again for 8 years to protect yourself. Lots of people don't realize the implications but the names don't change on deeds until a property transfer takes place so pull our your mortgage paperwork and read all the fine print about non-payment, foreclosure, their rights, etc. Also, the attorney who handled your bankruptcy should have advised you as to all that so give him/her a call and go over the situation. Best of luck to you.

[McMark]

but it will not cover you in case someone walks across the front lawn, discovers a hangnail on his big toe, and decides to sue you for it.

LMBO!

Our attorney told us to keep it insured until the deed no longer has our names on it to cover our butts, and we are taking that advice because if it weren't for bad luck...we'd have no luck AT ALL! If it can go wrong for us, it will, or at least it has up to this point which is how we got in this whole mess.

[Confused33]

You won't be saying that if some neighborhood kid, real estate agent or someone else falls on the sidewalk or steps on that property. Better keep your fingers crossed cause as long as that property is in your name, it's your responsibility and without insurance, you can get personally sued and if you have already filed bankruptcy and have been discharged, you can't file BK again for 8 years to protect yourself. Lots of people don't realize the implications but the names don't change on deeds until a property transfer takes place so pull our your mortgage paperwork and read all the fine print about non-payment, foreclosure, their rights, etc. Also, the attorney who handled your bankruptcy should have advised you as to all that so give him/her a call and go over the situation. Best of luck to you.

You mean the insurance that doesn't cover me in the event of an accident because the property is vacant, right?

I didn't ask if I could get sued or if the big bad wolf was going to come get me.

I want to know if they can make me pay for their lender placed insurance if I'm discharged.

[debee]

If you're the owner on title, you can be sued by anyone - even a burglar on the property. I don't think the lender can force you to pay though because the contract isn't in effect post-bk (I think - this is what I'm hoping someone can answer).

I wonder if you can get off title by quit claiming the house to someone who doesn't care about all that - a homeless person, etc. I've posted this question elsewhere to see if a guru knows, but no answers so far.

[CCsAreEvil]

I want to know if they can make me pay for their lender placed insurance if I'm discharged.

Hmm.. I wouldn't use their insurance. Just contact one of the big carriers and tell them your situation. You should be able to use any company you want (at least the big name ones).

[ccsjoe]

You mean the insurance that doesn't cover me in the event of an accident because the property is vacant, right?

I didn't ask if I could get sued or if the big bad wolf was going to come get me.

I want to know if they can make me pay for their lender placed insurance if I'm discharged.

Bottom line yes, they can take out their insurance and charge it to you. Their ability to collect on your debt got discharged, however, your name on title and their name as lien holders plus all obligations that come with that are still valid until such a time as your name is no longer on title. This is an unfortunate loophole a lot of homeowners are discovering, one that should not be there.

[Confused33]

Now that I've stressed myself out again...

The insurance company cancelled the policy when they found out the house was vacant.

B of A wants to put their insurance on it / me to get insurance.

I can't get insurance on the property because it is vacant.

This whole thing is so frustrating. I try to not care but it keeps sneaking up on me.

[debee]

The whole insurance thing has been a huge concern for us as well. It's all I've been researching lately. What I've learned is that you don't have to pay for lender-placed "homeowner's" insurance. They will get a hazard policy and they will pay for it. They can send you the bill and a threatening letter, but that's it.

You may want to consider a "personal liability" policy until your name is off the house. "Personal Liability" insurance doesn't cover fire, vandalism, or damages to the house itself. It only covers YOU in case you are sued for damages by someone injured on the property, or if a diseased tree in your yard falls over and crushes Grandma in the next, or if a water leak in your property causes mold to grow in the neighbor's condo, etc.

Good luck!