I just talked to my insurance agent the other day and had a situation neither of us quite new how to handle. We surrendered our house in our Ch7, had our 341 in April and moved out of the house in March. We had an escrow account with our mortgage to pay our taxes and insurance on the house, the homeowners insurance renewed in March so the mortgage company paid the full amount for this next year. Since we are out and surrendered the house, it also went up for auction yesterday, insurance agent canceled homeowners policy and a refund is to be issued. So who should get it, the mortgage company or myself since I put the money into the escrow account. The agent sent it to the underwriter to see who should get the refund. It is only $500 but it would be nice to get back.
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When they set the sale dates for March & April on our two homes I cancelled the policies (effective for those days). One was paid through an impound account, one directly by me - I received both refunds directly. Technically the insurance bill is yours, not the lender's, so all monies paid are also deemed yours. In our case, it was actually our money that paid the bill. Not sure in your case if the money paid to them was actually yours or the lenders, but I'm also not sure it matters to the insurance company.
A bit of irony... the sale dates were cancelled, apparently the banks decided they didn't want our lovely homes! I just found out a week or so ago! -
i talked to our escrow co and they said they have to send the money back to the owner. They cannot send it back to the escrow account itself nor the mortgage co, it has to go to the owner.
just what they told me, not positive.Don't take my word for it, I'm just sayin'Comment
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