Forclosure Questions

[flhomeowner]

I am seriously thinking about moving into a townhouse soon and letting my house go into forclosure. The reason is because as a single parent of one daughter getting no child support, I can't afford my house anymore. I have owned it since it was built in 2001. I was stupid and didn't know enough until recently about it and I am in an ARM Mortgage, it will adjust next year, I have been paying interest only for 1 1/2. My credit is not good and I can't get a lower rate for re-financing. The company New Century who I got the mortgage from is now bankrupt from all the sub prime mortgages.

The questions-If I move in the next few weeks, and the forclosure takes approx. 180 days, do I still pay my home owner's insurance while the house is empty until everything goes through?
I don't know how it all works. I haven't made my August payment and don't plan to because my homeowner's insurance jumped from $500-$983 in 2 years since Ivan it hit us in Pensacola FL. I had no damage, and now they want to raise rates another 50% on top of how high they are now. I will be able to rest easy after all of this is done, but I will miss my house.

Any tips and help about the insurance would be appreciated.

Thank you for reading such a long post!

Gwen

[Beach Bum]

You don't have to move out of your house while your in foreclosure. You can actually stay for 6-9 months, depending on your state.
It basically gives you a chance to save up some money, not making any rent or mortgage payments during the process.
Do some more research here.

[demismom]

Yes, you MUST keep the home insurance. The house is yours until the deed is in someone else's name (mtg company, etc). We haven't lived in our house for 2 years, and it's been empty for 1 of them, but we STILL pay the insurance because if something happens to the house or someone that's on the property, we're still the owners and we're still liable for it.