homeowners insurance during fc? confused!

[Flamingo]

Apparently seriously's Ins Agent didn't want to be part of the conversation. LOL

I wonder if the agent would be willing to... "under oath, state that he never had that conversation...?" I think time for a new agent, OP.

Yes, there is contingent liability in any real estate owned by the property owner, especially if the property is empty. However, the practical side of this is if the owner is insolvent, what would any Plaintiff in a suit be able to get? Not that anyone would want this problem hanging over their head, but I can see that if it comes down to feeding the kids or continuing the ins on the property, the choice is an easy one. If funds are available to purchase the ins w/o compromising basic needs of life, then get the ins. If you cannot afford the ins then best to inform the lender in writing that there is no ins coverage for the structure and any liability thereon. The mtg lender will surely obtain coverage on the strucutre and may also have some form of liability covg, but this may vary from lender to lender.

There is a statute of limitations as to when one can file a lawsuit for injury. In most states it is about two years - one would have to check with their own state. Therefore, if someone (i.e., real estate agent, bank rep, etc.) slips, has a tree limb fall on their head or anything else that can happen accident wise in or out of the house while it is still in the original owners name, two years can pass by before a suit is filed. One would have to stay unemployed and asset free during that time to avoid paying anything in a lawsuit. I think it is cheaper to carry insurance for the several months it is needed before title changes hands.

[Mensa1]

There is a statute of limitations as to when one can file a lawsuit for injury. In most states it is about two years - one would have to check with their own state. Therefore, if someone (i.e., real estate agent, bank rep, etc.) slips, has a tree limb fall on their head or anything else that can happen accident wise in or out of the house while it is still in the original owners name, two years can pass by before a suit is filed. One would have to stay unemployed and asset free during that time to avoid paying anything in a lawsuit. I think it is cheaper to carry insurance for the several months it is needed before title changes hands.

I agree with your sentiment but my point was if it comes down to insurance on an empty house or food for the family, and one is insolvent, 1) then you are going to buy the food... 2) facing that choice with no $$$ on hand one isn't likely to get out of that hole in less than 2 yrs either.

But if one can afford the prem w/o substantial impact, then pay the prem.

[knotholeone]

I have a question. If you are in an active 13 making payments and you walk away from your home, do you have to pay the deficiency? I live in Va which does require this otherwise. My mortgage in not in my plan but the past due payments at the time are, not the most recent 5 months. Please help.

[Flamingo]

I have a question. If you are in an active 13 making payments and you walk away from your home, do you have to pay the deficiency? I live in Va which does require this otherwise. My mortgage in not in my plan but the past due payments at the time are, not the most recent 5 months. Please help.

The first thing you do before you do anything else if you are in an active 13 is to contact your attorney before you stop making payments of any kind. Not only will you lose the house, you will have your Chapter 13 Plan dismissed putting you right back at step 1 before you filed. Yes your mortgage is part of your Chapter 13 even though you pay it outside of your Plan. Contact your attorney.

[Flamingo]

I agree with your sentiment but my point was if it comes down to insurance on an empty house or food for the family, and one is insolvent, 1) then you are going to buy the food... 2) facing that choice with no $$$ on hand one isn't likely to get out of that hole in less than 2 yrs either.
But if one can afford the prem w/o substantial impact, then pay the prem.

Many folks in this forum can tell you how well they have done in the few years after filing or of the numerous postings of folks who formerly posted and have left the forum as to how well they are doing after filing. Yes, there are those that don't and one has to weigh out their particular situation because there is always the risk that 24 hours before title changes hands that a ceiling tile from an unrepaired ceiling let go via nonrepair falls on an agent's head or someone's kid gets in the house and falls through the floor, or who knows what else can occur. Two years later while the former owner is in their new place with no bills, maybe a good/better job, and money saved, here comes the lawsuit and they are unable to file bankruptcy again. I've seen too much risk over the years and lawsuits resulting therefrom to ever state to anyone not to keep insurance on anything that is in their name and where there is risk of damages. But people do what they gotta do and the situation is what it is for that particular moment in time. People need to know that when they think about/slide into foreclosure, this stuff is gonna happen so they need to go over everything posisible withi their lawyer and insurance agent to protect themselves.

[BCA2009]

Many folks in this forum can tell you how well they have done in the few years after filing or of the numerous postings of folks who formerly posted and have left the forum as to how well they are doing after filing. Yes, there are those that don't and one has to weigh out their particular situation because there is always the risk that 24 hours before title changes hands that a ceiling tile from an unrepaired ceiling let go via nonrepair falls on an agent's head or someone's kid gets in the house and falls through the floor, or who knows what else can occur. Two years later while the former owner is in their new place with no bills, maybe a good/better job, and money saved, here comes the lawsuit and they are unable to file bankruptcy again. I've seen too much risk over the years and lawsuits resulting therefrom to ever state to anyone not to keep insurance on anything that is in their name and where there is risk of damages. But people do what they gotta do and the situation is what it is for that particular moment in time. People need to know that when they think about/slide into foreclosure, this stuff is gonna happen so they need to go over everything posisible withi their lawyer and insurance agent to protect themselves.

Flamingo, you are correct, but the majority of regular home insurance premiums are for hazard insurance. Drop hazard insurance and purchase liability insurance. The reason insurance companies drop people when the home is vacant is because of the higher risk of property damage.

You can easily get a umbrella liability policy that covers you for any liability (not just accidents on you foreclosed property). For $300 a year you can get a $1 million policy. Which is probably much more coverage than you homeowners policy covered.

[seriously]

thanks very much, everyone, for the input. I haven't been able to come on for a while due to illness. FWIW, yes, the FC was included in a Chapter 7, but I understand the point that I still technically own the house. I had wanted to move in April, but since I'm sick I now *can't* move til Sept at the earliest--and am hoping maybe the FC will be done by then! But in the meantime I will talk to my atty, and look into other ins companies...

[Chazlyn]

Seriously, good luck to you! Hope you feel better and just know- you are not alone in this confusing process!!

[jb1997]

homeowners insurance during fc? confused!

I have read all of these posts and understand because of liability the insurance coverage. My question is how do ya know when the deed is out of your name!!!

Yes, how do you determine when the deed is out of your name?

County Records? Search under what?

Background: Trustee sale back to bank on 5/11/10. Queried realtor who is representing bank owned property about insurance - Quote " You can cancel your insurance and I will see if I can get you a copy of the foreclosure deed".

Not sure if I am getting the runaround!