Insurance claim on house in foreclosure

[COrnguy]

Had a bad storm 10 days ago that ruined my 14 year old roof. Should I turn in a claim now or wait until I file, which will be next week? I'm concerned that if I turn it in now, the mortgage holder will not sign-off and release it for me to make the repairs.

My brother is a insurance adjuster and was the one to climb up and assess the damage. Says about $8000+ worth.

Thanks in advance.

[Minnymouth]

Okay, take it from "somebody who know"!!!!

I had damages (roof/and inside) from a storm less then 30 days after I filed bankruptcy. The insurance company would not pay off since I was in bankruptcy.....

Too make a long story short - trustee got insurance checks (asset), roof/damages was replaced out of my own pocket later on. (did me a lot of good to have insurance, huh!!)

In your case, being a Chapter 13 and the home is in foreclosure, I'm sure the mortgage company will receive the insurance check to repair damages on the home before resell. YOu will receive NOTHING.... and if by some chance they send the money to you - you better NOT spend it..... the trustee will be looking for that check...............it goes to his creditor the mortgage company. In fact the Trustee may seize it to split among all the creditors.... (that's what my trustee did).....

Doesn't make any difference when you turn the claim in, the trustee will still seize it..... either before filing or afterwards.....

Count your blessing that the home is in foreclosure and you won't be out a new roof at your own expense like I was.........

Minny

[FeelingHopeless]

Minny's right ... we had a similar experience. We were in bankruptcy ... a really bad wind storm came through ... shingles went flying off. The damage was relatively small ... the insurance company was only going to pay $1,600 towards repairs.

At first they made the check out to the mortgage company ... who naturally wouldn't release it because of the bankruptcy. But at least the clerk who waited on me tried to be nice. She said, "You don't want to give this to me. If you do, I'll have to seize it and use it to put towards the bankruptcy. Go get your insurance company to write you a check directly."

So, I called the insurance company and, believe it or not, they sent another check that was only in our name. Not ... a good thing. Somehow (I can't remember how) the Trustee got involved. It turned into an enormous hassle.

In the end, the Trustee let us keep the $1,600 but only because we were a 100% plan. He said in 99% of the cases, insurance money is immediately put towards your creditors ... which is kind of harsh when buckets of rain are pouring into your roof. Best of luck!!!