Do I have to maintain homeowners insurance?

[Dizzy]

We had our 341 on May 14th and we are surrendering our home. We've since moved out of the house and out of state. I called our homeowners insurance company today to ask to change to a "vacant" policy and they don't do them but said since it's vacant they are obligated to cancel my policy. I and my lawyer have contacted the mortgage company to let them know we are no longer there but they aren't moving any quicker on a foreclosure. meanwhile, my lawyer says that I need to keep a policy on the house or the mortgage company can come after me if something happens to it. But isn't that why I filed BK in the first place??? I'm SO confused. Has anyone else been in my situation and what did you do? Thanks.

[Pandora]

you must keep a policy on the house until the foreclosure is complete and the bank takes new ownership. You will be held responsible for anything that happens to the house (fire, theft, vandalism, etc) until then. Get the policy back on the house, its in your best interest.

On the other hand (and I'm not certain on this) but once you get a discharge, it may revert the house back to the bank before the foreclosure takes place, therefore rendering the bank responsible for the home and insurance. Check with your lawyer on that too. ;)

[Dizzy]

I didn't ask them to cancel it and they will NOT insure a vacant house. I seem to be screwed.

[OHBOY]

Does not sound as though you have much faith in your lawyer..? I would certainly listen to him!

Your discharge is on the mortgage. A mortgage is a lien on your property. When you bought the property you got a mortgage on it to finance it. You used the property as collateral, promising the collateral to the lender in case of default.

Bankruptcy discharged the mortgage on your property (your obligation to make repayment). YOUR NAME remains on the deed, until the bank takes posession of the property which is at the time of foreclose. The banks name does not automatically appear on the deed to the property...

Understand too that you remain liable for any homeowner association fees until foreclosure.



I am not an attorney, hence the above are just my laymans thoughts on the whole 'schebang'...

[booboo]

But if you lapse your homeowners policy, the bank will automatically issue one to protect the property and the fees for this policy will be added as a lein, therefore, I would assume that since your mortgage was discharged, those fees would become part of the balance owing in ofreclosure, so you should be out nothing. The liability however for any personal injury, stolen personal property might still be your responsibility.

BooBoo

[Dizzy]

Does not sound as though you have much faith in your lawyer..? I would certainly listen to him!

Your discharge is on the mortgage. A mortgage is a lien on your property. When you bought the property you got a mortgage on it to finance it. You used the property as collateral, promising the collateral to the lender in case of default.

Bankruptcy discharged the mortgage on your property (your obligation to make repayment). YOUR NAME remains on the deed, until the bank takes posession of the property which is at the time of foreclose. The banks name does not automatically appear on the deed to the property...

Understand too that you remain liable for any homeowner association fees until foreclosure.



I am not an attorney, hence the above are just my laymans thoughts on the whole 'schebang'...

It's not that don't have faith in my lawyer and now that I know it still needs to be insured I'd covert it to a "vacant" policy if I could. It's just that I can't find anyone to insure a vacant house. I've discovered this since I first posted this thread. Now my problem isn't "do I need to", but how to get it done.

[SMinGA]

If you scan the foreclosure thread, I've seen in the past multiple threads about this... The mortgage company will get it insured & bill you for it. It should be eligible for discharge in bankruptcy.

But if someone gets hurt, etc. on your property - while its still yours - any personal liability actions against you might not be.

[Dizzy]

That's my understanding as well. It bothers me that someone could get hurt and try to sue me, but what can I do, right? Even a "vacant" policy will only cover acts of God, according to the agent. It wouldn't cover personal injury or vandalism.

[Miguel]

Home owners insurance is one of the most important insurances that are available. Home owners insurance will protect you from any damage that might happen because of natural causes or any others causes. It also protects the inhabitants from any injury that might happen within the property.

[sickandtired]

I asked my lawyer this just the other day. She said that we are not liable for the house after we move out, and that we should send her the keys and she would get them to the bank. Also she said we could drop our insurance policy once we move.