I am letting the house go. Do I still need homeowners insurance on it?

[needhelpinnj]

Hello.

I filed for Chapter 7 in Feb. 2010 and was discharged in Aug. 2010. The main reason was I got into a mortgage that I couldn't afford. I moved out of the house and have been waiting for the bank to foreclose on it, but they haven't.

Do I still need to have insurance on it? Can they come after me if something happens to it? If anyone in NJ is reading this, how long does it take to foreclose in NJ? I haven't paid anything towards it in 2-1/2 years.

Thank you for reading this. This is a great site.

[AngelinaCat]

You need to look at all of the posts on the Insurance Board.

There are a whole hosts of posts regarding property insurance. Most of it is mixed. You will be told that you are responsible for anything that happens on your property as long as it in in your name.

However, the truth is that if you vacate a property and 'something' happens, and the insurance company finds out that the property was vacant, you will NOT be covered.

Nor will you be covered if the insurance company knows you are vacating the property.

Here is the link to the Insurance Board:

http://www.bkforum.com/forumdisplay.php?48-Insurance

You may wish to look for the member tobee43. She and her DH abandoned a home in NJ, that to my knowledge is STILL not foreclosed on after 5 years, and is in great disrepair.

[needhelpinnj]

Thank you AngelinaCat. I appreciate the info. I didn't know about the insurance board and will check it out.

[bcohen]

If anything happens to the house itself, i.e. if there is a flood, fire, storm damage, etc, that is solely the bank's problem. You have discharged personal liability to the lender, and the bank's sole recourse is to repossess its collateral (i.e. foreclose on the house); it cannot come after you for any deficiency. So if the house collapses from storm damage, burns to the ground, etc, that just means that the bank's collateral is worth a lot less, and if/when they foreclose, the deficiency (which you are NOT liable for) will be that much larger.

The only benefit of maintaining homeowner's insurance is to protect against the very remote contingency that some person chooses to trespass onto your property and this person gets injured on your property and this person chooses to file a lawsuit against you, as the owner of record. I would think the likelihood of this scenario to be so remote that paying money for homeowner's insurance is a bad investment if you aren't even living in the house anymore!

[AngelinaCat]

The only benefit of maintaining homeowner's insurance is to protect against the very remote contingency that some person chooses to trespass onto your property and this person gets injured on your property and this person chooses to file a lawsuit against you, as the owner of record. I would think the likelihood of this scenario to be so remote that paying money for homeowner's insurance is a bad investment if you aren't even living in the house anymore!

Plus it is throwing money away, because as I said, when the insurance company finds out the home was vacant, you won't be covered.

[scooter6251]

I have been in the same position for nearly 3 years. I live in another state from where the property is located. I've had a renters' insurance policy and now a homeowners' policy on my current residences. And I have had a rider on both policies extending liability coverage (liability only) to the abandoned house. It only costs me about $20 a year.

[tobee43]

good morning all!!

needhelpinnj, well not so much when it comes to the time you rec a summons or a notification of foreclosure. nj boast the ONLY one of it's kind law. i'm going to post a bit of it from my blog so you can feel better

N.J.S.A. 46:10B-51, the New Jersey Creditor Responsibility Law:

If Foreclosed in NJ U are NOT responsible for CARE of RESIDENCE! QQ

i belong to another site, but thought this information may be helpful for those that have any questions on whether or not they are responsible for lawn care, trash etc. this is was was drawn up by the nj law makers i believe it was first done in 2010. i just found it and thought those in nj may want to read it as it is very helpful in outlining your responsibilities to a home once vacated after you were served


Full text of N.J.S.A. 46:10B-51, the New Jersey Creditor Responsibility Law


a. (1) A creditor serving a summons and complaint
in an action to foreclose on a mortgage on residential property in this State shall, within 10 days of serving the summons and complaint, notify
the municipal clerk of the municipality in which the property is located that a summons and complain in an action to foreclose a mortgage

1.has been filed against the subject property. The notice shall contain the
name and contact information for the representative of the creditor who is responsible for receiving complaints of property maintenance and code violations,
may contain information about more than one property, and shall be provided by mail or electronic communication, at the discretion of the municipal clerk. If the municipality has appointed a public officer pursuant to P.L.1942, c.112 (C.40:48-2.3 et seq.),the municipal clerk shall forward a copy of the notice to the public officer or shall otherwise provide it to any other local official responsible for administration of any property maintenance or public nuisance code.

In the event that the property being foreclosed is an affordable unit pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), then the creditor shall identify that the property is subject to the "Fair Housing Act."The notice shall also include the street address, lot and block number of the property, and the full name and contact information of an individual located within the State who is authorized to accept service on behalf of the creditor. The notice shall be provided to the municipal clerk within 10 days of service of a summons and complaint in an action to foreclose a mortgage against the subject property.

(2) Within 30 days following the effective date of P.L. 2009 c.296, any creditor that has initiated foreclosure proceeding on any residential property which is pending in Superior Court shall provide to the municipal clerk of the municipality in which the property is located, a listing of all residential properties in the municipality for which the creditor has foreclosure actions pending by street address and lot and block number. If the municipality has appointed a public officer pursuant to P.L.1942, c.112

(C.40:48-2.3-15 et seq.), the municipal clerk shall forward a copy of the notice to the public officer, or shall otherwise provide it to any other local official responsible for administration of any property maintenance or public nuisance code.b. If the owner of a residential property vacatesor abandons any property on which a foreclosure proceeding has been initiated or if a residential property becomes vacant at any point subsequent to the creditor's filing the summons and complaint in an action to foreclose a mortgage against the subject property, but prior to vesting of title in the creditor or any other third party, and the property is found to be a nuisance or in violation of any applicable State or local code, the local public officer,municipal clerk, or other authorized municipal official shall notify the creditor, which shall have the responsibility to abate the nuisance or correct the violation in the same manner and to the same extent as the title owner of the property, to such standard or specification as
may be re.

c. If the municipality expends public funds in order to abate a nuisance or correct a violation on a residential property in situations in which the creditor was given notice pursuant to the provisions of subsection b. of this section but failed to abate the nuisance or correct the violation as directed, the municipality shall have the same recourse against the creditor as it would have against the title owner of the property, including but not limited to the recourse provided under section 42 of P.L.2003, c.210
(C.55:19-100).

http://www.hcdnnj.org/assets/documen...esfullbill.pdf

to quote some of me...lol!

" New Jersey has the nation’s ninth-highest percentage of loans entering the foreclosure process during the fourth quarter of 2010. State legislators have responded with the Creditor Responsibility Law. Signed into law in 2008 and amended in January 2010, the law makes lenders responsible for maintaining properties that have become abandoned during the foreclosure process. If code violations or nuisance conditions go unaddressed and the city makes repairs itself, the law allows the city to put a lien on the property and go after the lender’s assets to obtain repayment as if the lender were the title holder.New Jersey is the first state in the nation to have such a law. In Illinois, efforts to pass a similar law failed two years ago, but now another bill is on the table. House Bill 1109 would hold responsible beneficiaries, which could mean lenders, banks or trustees of mortgage-backed securities, for maintaining vacant properties on which they are foreclosing or even before they initiate foreclosure, according to Adam Gross, director of the regional affordable housing initiative at Business and Professional People for the Public Interest, a public interest law and policy center in Chicago."

AngelinaCat is correct it's been way over 5 years now and nothing from Chase. the house has never been put up for sale, they have done absolutely nothing to medicate their damages and have actually have been in violation of the
N.J.S.A. 46:10B-51, the New Jersey Creditor Responsibility Law over and over. although, we lived up in sussex cty, so there were no law mowing ordinances, or keep the trash out of your front lawn etc., i'm sure our old neighbors have called about the ponds and the pool, they must be beyond green yuck, mosquito galore heaven! yet, the town, which we really don't have we have a township, the county and the state all have to go to chase to get these things resolve. we know now this once beautiful, and at a time worth well over 600k is full of black mold, a visitor informed us there i a tree growing in the bottom floor the foundation is cracked and spurting water. what a mess!!

hopefully they will foreclose on your home sooner than ours. actually, and most likely our old home will never be foreclosed on and unfortunately the banks have a 20 year limit on when and if they decide to change title. until then, it's chase's house all the way!