Insurance on Foreclosing Home

[dweebolina]

Does anyone know when we can cancel home insurance on a home that will be foreclosed? We have gotten notice that the automatic relief of stay was lifted to start proceedings Feb. 21, 2006. Our attorney said we should be fine to cancel our policy as long as our insurance company gave the bank 7-10 days notice. I have requested we be given a copy of the cancellation letter also.

I am just wondering if that is true and we can cancel safely. I would hate to do something that we shouldn't do (again!!!). Please let me know.

Dweeb

[SinkingFast]

You've been thru BK and included the house?? Is your BK discharged and/or closed?? If so, I'd say you're safe. I'd think once you are no longer legally responsible for the house, it would be safe to say you're no longer responsible to insure it as well.

Probably the attny is suggesting the 7-10 day time frame to allow the Lender time to bring the property in under their insurance umbrella.

I know as we've gone thru Consults, all the attnys have asked if we have our house still covered by insurance. The attnys concern was for our liability. If the house should burn down, if someone injures themselves on the property, etc. Fortunately, our policy renews end of July, first of August, so our homeowner's is in place for a while yet. But if our filing drags out for some reason, we could be in the same position as you. Wondering if we need to get some sort of short term coverage.

[Minnymouth]

Once you surrender the home or it is seized in BK you are no longer responsible for the insurance, property taxes on it. If the mortgage company takes it back its their responsibility and if the Trustee seizes it - it's his responsibility to see that its covered as long as he maintains possession of it.

Been there, done that!!

[SinkingFast]

I gotta ask, Minny.

When we file BK, we're gonna include the house.

At what point does the house "get siezed" or is no longer our responsibility??

I don't mean to sound dumb. I'm just trying to get the time line. What to expect when??

[poorme]

It depends on a couple of factors, including your state's laws, the lender, and their direction to a local foreclosure firm (e.g. where I live, there's a huge law firm that mass-processes foreclosures, and has about a hundred or more staff attorneys).

It can literally take as few as a couple of months or it can take much longer. I'm waiting on my 'official notice' from the lender still. My discharge came through 3/1, I filed bk in October, and my last payment to the lender was in June, '05. There are a few other extenuating circumstances in my case, but at this point the earliest they can have a foreclosure sale is early May. It has not yet appeared in the official notices in the paper.

I have read that after the sale, it can literally take 2-3 months to have someone forcibly evicted. So I might be here until July/August....or not!

[SinkingFast]

We're not living there. Hubby lost his job. Got a new job outa state and we've moved. Can't sell the house. Gonna let it go in BK.

We're already in Breach, a week beyond our Cure date, well on our way to Foreclosure. I'm hoping we get to file BK before it's an emergency situation.

We thought we had an attny all picked out. Seemingly very knowledgeable. But turns out he's a lead butt. We went ahead and retained him when we got the Breach notice over a month ago. He was supposed to negotiate a non deficient DIL for us to give us a little more time before we had to file BK. But,.......... In over a month, all he's done is order Title work and get a copy of the contingent offer we have from a buyer. Hasn't contacted the Lender on our behalf and won't return my phone calls.

So we're back in the Consult hunt again.

Did one on-line interview for one attny. It's an attny's program that interfaces the on-line interview into a BK Petition program. No "We gotta see what the Means Test says." stuff. It's all right there in front of the attny, including acct numbers, amounts of debts, etc. Filed that Monday nite. Haven't heard from her.

Have another Consult set up for this coming Thurs. Did a phone Consult back a couple months ago. Asked for a face to face appt at that time. He said get your taxes done and your papers together and give me a call back when you're ready. I thought that was wierd so we didn't even go back to him until now. The only other decent attny we met turned us down 'cause she didn't wanna deal with outa state exemptions. UGH!!

I'm hoping we don't have to pay for insurance beyond when ours runs out come summer.