Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

homeowners insurance during fc? confused!

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • homeowners insurance during fc? confused!

    I had added this to an existing thread that was mainly the same topic, but I think I was trying to revive a thread that was too old: trying new thread now (with some edits)

    The other day, I mentioned to my ins guy that the house was in FC and asked him if I move out, do I need to do anything special w/the ins. I thought it was a perfectly valid question, since my atty had told me I needed to keep ins-- just wanted to do it the correct way. Well, ins guy replied that as far as he knew I would be living in the house and we never had this conversation. Whoops. This leads me to believe that if I were to vacate the house, my ins policy would be somehow void.

    My atty told me that I could move wherever, whenever I wanted as long as I informed the bank that I was leaving, and kept ins on the house. I had been planning to move this spring--it's only b/c I suddenly developed a health problem, that I'm not in another state already. If my ins bills were being mailed to another state, my phones in this area code were turned off, etc etc--it would be pretty hard to say that I was still living in this house, no? And then if something happened that I needed the ins for, would I be screwed? I'm already bk, lol.

    Due to my health problem, I need to stay in this area (in this house or not) another 6 mos. Hopefully the FC situ will rectify itself in that time; it's already been almost a year since I stopped paying mortgage. BUT. What should I do about the ins if I want to leave before bank sale? Should I call the bank & ask them to insure the damn thing? Try and find another insurer? Or do I really have to stay here until the bitter end? NY state fwiw.

    Thanks very much for any advice/personal experience you can give!!

  • #2
    I am not an expert in this field but I think that your insurance will not become void if you move out of the house. I think that you should call up the insurance company and get it clarified. Maybe your insurance guy made a mistake.
    Florida homeowners Insurance

    Comment


    • #3
      Actually, the insurance could become void. Look at your policy. Getting insurance for a vacant house (in our area) is almost impossible.

      That is specifically why your insurance person said what he said. He is supposed to log all of that information. Maybe one of the insurance people on this site can jump in to give clarification.

      As to the bank putting on insurance, yes. They will "force place coverage" if you let your policy lapse or the insurance co cancels you because you vacated the house. The problem with that type of insurance is not only its extreme cost (it is usually at least 3X's what you normally pay), but the coverage only covers the lender and the structure. Nothing inside.
      Filed CH 7 9/30/2008
      Discharged Jan 5, 2009! Closed Jan 18, 2009

      I am not an attorney. None of my advice is legal advice in any way..

      Comment


      • #4
        I can tell you from very recent experience, that as soon as my Insurance company found out my fc home was vacant, they dropped me like a hot potato!!! And I then received several letters from BOA threatening to charge me $3500 a year for THEM to get hazzard insurance on the property- which would only cover the property and not liability coverage for ME if someone were to get hurt on the property, etc... So they forced me to obtain vacant property insurance, which is DOUBLE what I was paying for homeowner's insurance.

        Comment


        • #5
          Wow, three threads in this forum dealing withthe same issue at the same time. The OP in this thread didn't indicate whether they had been discharged in BK or not. That is the issue here. Once you are discharged in BK you no longer owe the bank anything and have no responsibility to protect the property. If the bank wants to insure it they are free to, but you don't have to.

          If you are just being foreclosed on, you still have an obligation to pay the note. After the foreclosre sale takes place, they will sue you for a deficiency. According to the terms of the prommisary note/mortgage, you agreed to keep insurance on the house. If you don't they can "charge" you for it. But all that really means is they will add it to the amount you already owe them. You've already decided you are not paying that back so who cares if they add to the balance. It will just increase the deficiency judment later.

          Lets say you don't pay the insurance and the bank fails to get any either (which isn't going to happen, they have blanket polices to cover this). But lets just assume.

          Then the house burns to the ground with no insuance. What is the bank going to do? thay are going to auction off the empty lot and then sue you for the deficiency.

          So, if you have filed BK or are going to, you don't need to worry about protecting the property from damage.

          If you are not planning on filing BK and hope to pay off the deficiency after the foreclosure sale, you probably would want to keep it insured to prevent the deficiency for going up if the property became damaged.

          The only other consideration is that until the deed is out of your name, you own the property, so if some vagrant breaks in and falls down the stairs, he might sue you for his medical bills and pain and suffering. So if you are really worried about liability issues, you may want to keep it insured. But don't worry about damage to the property.
          Wife Laid off - 11/16/2009 Missed First Payments - 12/5/2009
          Filed Chap 7 - 12/31/2009
          341 - 2/12/2010
          Discharged - 4/19/2010

          Comment


          • #6
            What everyone needs to know if in the mire of the foreclosure process that as long as that property is in your name, it needs to be insured; not to have insurance on it is lining you up for all sorts of trouble; all it takes is one person to slip and fall on that property and get hurt prior to transfer of title and not only will you be facing foreclosure, you will be facing a lawsuit which can be filed up to two years or so after the incident (depending on statute of limitations) which would be long after the fact of filing bankruptcy.
            _________________________________________
            Filed 5 Year Chapter 13: April 2002
            Early Buy-Out: April 2006
            Discharge: August 2006

            "A credit card is a snake in your pocket"

            Comment


            • #7
              Flamingo, The liability issue is a real concern. and I'm not suggesting people ignore it. I'm just pointing out that after discharge in BK, you have no responsibility to take care of the property.

              It may be cheaper to purchase a umbrella liabilty policy, rather than insuring the home specifically.
              Wife Laid off - 11/16/2009 Missed First Payments - 12/5/2009
              Filed Chap 7 - 12/31/2009
              341 - 2/12/2010
              Discharged - 4/19/2010

              Comment


              • #8
                BCA2009 that isn't really true. BK releases you from the lien on the property (money owed) but it does not remove you from the TITLE on the property. That doesn't happen until the foreclosure process has been completed and the bank takes over the TITLE to the house.
                Until then your name is on the title, and as such you are at least partially liable for the property. This is also why banks have been dragging their feet with foreclosures because as soon as they take over the TITLE, they become the owner of the property and must show it on their books.

                Comment


                • #9
                  Ok,not to muddy the waters, but can you have renter's insurance on a rental that you live in and homeowner's insurance on a house that you don't live it but is being fc on? Haven't check with our insurance yet.

                  Comment


                  • #10
                    Possibly, but the issue is most home-owner's insurance companies do not, or will not insure a vacant home. Usually once they catch wind that you're not living in the home anymore they will drop your policy ASAP.

                    Comment


                    • #11
                      Originally posted by neorecon View Post
                      BCA2009 that isn't really true. BK releases you from the lien on the property (money owed) but it does not remove you from the TITLE on the property. That doesn't happen until the foreclosure process has been completed and the bank takes over the TITLE to the house.
                      Until then your name is on the title, and as such you are at least partially liable for the property. This is also why banks have been dragging their feet with foreclosures because as soon as they take over the TITLE, they become the owner of the property and must show it on their books.
                      Please explain what liability you have to take care of the property that would require insurance.

                      I agree you still have title to the property, but there are no requirements that you have to have insurance on property that you own. If it is destroyed in a hurricane, you would have no liability to rebuild or restore the property.

                      In my earlier post I did address the personal liability issue, where you could be sued if someone got hurt on your property, but you don't need regular homeowners insurance for that. Just a general liability policy.
                      Wife Laid off - 11/16/2009 Missed First Payments - 12/5/2009
                      Filed Chap 7 - 12/31/2009
                      341 - 2/12/2010
                      Discharged - 4/19/2010

                      Comment


                      • #12
                        I'm very new to all of this and I'm just speaking from my own personal experience (I live in PA). But my attorney also advised that I maintain insurance on the property until the deed to the home is out of my name. No insurance company would cover me, so I had to get insurance through a company called Foremost, that deals with foreclosed homes.

                        Flower04, when I moved out and started renting, I had both Homeowners (on the vacant property) and Renters insurance.

                        Comment


                        • #13
                          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!!!

                          Comment


                          • #14
                            Originally posted by BCA2009 View Post
                            Please explain what liability you have to take care of the property that would require insurance.

                            I agree you still have title to the property, but there are no requirements that you have to have insurance on property that you own. If it is destroyed in a hurricane, you would have no liability to rebuild or restore the property.

                            In my earlier post I did address the personal liability issue, where you could be sued if someone got hurt on your property, but you don't need regular homeowners insurance for that. Just a general liability policy.
                            When you get into risk questions such as this, it is always best to discuss your particular situation with your attorney and also your insurance agent to protect oneself as much as possible during the foreclosure process. Everyone's situation is different but the liability risk is too great to me to be avoided by anyone.
                            _________________________________________
                            Filed 5 Year Chapter 13: April 2002
                            Early Buy-Out: April 2006
                            Discharge: August 2006

                            "A credit card is a snake in your pocket"

                            Comment


                            • #15
                              Originally posted by seriously View Post
                              The other day, I mentioned to my ins guy that the house was in FC and asked him if I move out, do I need to do anything special w/the ins. I thought it was a perfectly valid question, since my atty had told me I needed to keep ins-- just wanted to do it the correct way. Well, ins guy replied that as far as he knew I would be living in the house and we never had this conversation. Whoops. This leads me to believe that if I were to vacate the house, my ins policy would be somehow void.
                              Originally posted by Flamingo View Post
                              When you get into risk questions such as this, it is always best to discuss your particular situation with your attorney and also your insurance agent to protect oneself as much as possible during the foreclosure process. Everyone's situation is different but the liability risk is too great to me to be avoided by anyone.
                              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.

                              Comment

                              Unconfigured Ad Widget

                              Collapse
                              Working...
                              X