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

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as 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: (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 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

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 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

Foreclosure and Homeowner's Insurance

  • Filter
  • Time
  • Show
Clear All
new posts

  • Foreclosure and Homeowner's Insurance

    I am filing a chapter 7 but not until October at the earliest. This month (April) was the first month I did not make my mortgage payment. I am no longer living in the house (I received it in my divorce settlement but cannot keep it for various reasons. I haven't lived there in almost a year - the ex was living there and has since moved out.)

    I got a letter from the insurance co. that I needed to cancel the policy if the house in question was no longer my primary residence (they found out it wasn't my primary residence anymore due to mail forwarding from the PO). I called the atty that I've been talking to and he said to just go ahead and cancel the policy. He said there is no need to keep it if I don't plan to live there and if anything does happen on the property, I can just include it in the bankruptcy when I file. I'm not sure if he remembered that I was waiting so long to file though. He has forgotten this in the past when I've talked to him.

    Now my question is this. Because I am filing so far in advance, should I just do nothing with the homeowner's insurance right now? I am trying to avoid getting judgements against me in the time period between now and when I file (As of this month, I was up to date on all my debts). I don't want to call and cancel the policy and then they will send a notice to the mortgage company that I cancelled and then I may have them on my back ahead of when they normally would be.

    What are the ramifications of not paying the insurance (it's escrowed in the mortgage payment). Is it really nothing I should be concerned about b/c won't it just get included in the BK as one of my "creditors"? I feel like such an idiot lately b/c I waiver so much on these stupid decisions. I'm usually so confident in myself but lately, I just feel so dang stupid.

    I just don't know what to do and I really can't call this attorney that I've been talking to anymore b/c I just found out from the last time that I talked to him that he can't represent me in the area that I'm moving to. UGH - what a freakin mess!

    ETA: My ex's name is on the insurance policy too (although he's NOT on the mortgage). In our divorce settlement, we agreed not to not file bk on any debts that were jointly owned. If I don't pay this insurance policy, that will affect him now won't it? I don't have a great relationship with him but I don't want to cause him any stress that's not rightfully his either. So, now do I really even have a choice not to cancel the homeowner's insurance b/c my ex's name is on the policy too?
    Last edited by DivorceRuinedMe; 04-17-2007, 07:34 AM. Reason: Added another question at the end
    11/14/07 -filed C7 12/04/07 -case pulled for random audit.12/18/07 -341 held: Asset case due to engagement ring & tax return.02/19/08 - US trustee files motion to extend. 04/02/08- changed back to NO ASSET! I get my ring back and get to keep my tax return! :clapping: 04/28/08 -DISCHARGED!!! :yahoo::yahoo: 05/07/08 - CLOSED!!!

  • #2
    If you elect not to insure your home you are in violation of you deed of trust or security agreement you signed at closing. Your lender will put insurance in force to protect their interest in your home they have as a lender.
    I would suggest a different approach on your home. First why not try to sell it now and avoid the foreclosure and other issues.
    If you do not want to do that why not rent if until you lose title.
    If that is not good for you then contact your lender and transfer title to them as soon as possible.
    Nothing for either party is gained by leaving a house vanant for six months. Think of your former nieghbors and their issues with a vacant house and what that will do to the area.
    Last edited by emoney; 04-18-2007, 02:19 PM.


    • #3
      I've tried to sell it. The market is DEAD! I can't sell it. I just got whacked with a HUGE increase in property taxes (it was a newly constructed house and the taxes were not estimated properly for the escrow nor could they have been according to the title company). I also got whacked with a HUGE insurance rate increase (my premiums DOUBLED!). So, my nice little mortgage payment jumped $500 per month to cover the escrow shortage, the increased tax amounts and increased insurance premium.

      I couldn't find anyone to rent it at what I need to get per month and even if I did take a loss on it each month, then I would have to deal with getting someone out of the house when it does get foreclosed on. I do not want to be in that situation again. Plus, I now live 2 hours away from that property so me being a landlord again just isn't feasible. Plus, I have 2 children (2 and 3 months) and I just don't have the time to be dealing with nasty tenants. (I was a landlord before and I HATED it!)

      So, what are my other options then to give it back to the bank asap knowing that I cannot pay for it and am no longer living in it? I need to do what's best for me and not the bank or my neighbors at this point. And as selfish as that sounds, it is what it is when you have 2 babies to think of.
      11/14/07 -filed C7 12/04/07 -case pulled for random audit.12/18/07 -341 held: Asset case due to engagement ring & tax return.02/19/08 - US trustee files motion to extend. 04/02/08- changed back to NO ASSET! I get my ring back and get to keep my tax return! :clapping: 04/28/08 -DISCHARGED!!! :yahoo::yahoo: 05/07/08 - CLOSED!!!


      • #4
        I also believe in what goes around comes around. You are not the first person who bought a house before they were ready for the obligations. I have a daughter and new husband that got hit with increased property taxes on a new home. The builder and mortgage company should have told you, but you are still have the primary responsibilty.
        I can only give advice on what would I do and that is contact mortgage company today and describe the situation. You have nothing to gain in waiting.


        • #5
          Thanks emoney for taking the time to respond to my questions. I just am afraid that if I don't wait, and I call them say today, they will start the whole foreclosure process faster and then sue me and issue a judgement against me before I file for the bankruptcy. This will in turn cost me more money to get fixed (according to my attorney). He said that if I can file the bk before any of the lenders come after me that it will be much better, faster and cheaper for me. This is why I'm hesitant to call them. (And I cannot file until October at the earliest due to skewed income in the month of March).
          11/14/07 -filed C7 12/04/07 -case pulled for random audit.12/18/07 -341 held: Asset case due to engagement ring & tax return.02/19/08 - US trustee files motion to extend. 04/02/08- changed back to NO ASSET! I get my ring back and get to keep my tax return! :clapping: 04/28/08 -DISCHARGED!!! :yahoo::yahoo: 05/07/08 - CLOSED!!!


          • #6
            BK attnys told us as we were Consulting around to keep our house insured. That was to protect us against liability as long as the property was in our names.

            If some one walks onto the property, slips, falls, and breaks a leg, they can hold you responsible. So maybe you want to seek out a different type of insurance other than a traditional Homeowner's Policy that will protect you in case something like that were to happen.

            The taxes,........... The local tax authorities will probably tack a tax lien against the property. Since the house is going into Foreclosure, it generally falls to the Lender to take care of clearing up the tax situation. The Lender will have to do that in order to get a free and clear Title/Deed to sell the house to anyone else.

            When a house goes in Foreclosure, the Lender usually pays for repairs and marketing costs. Maybe clear up a tax lien and possibly catch up HOA dues arrears. In addition to the costs of the Foreclosure and subsequent marketing of the home.
            Filed Ch 7 - 09/06
            Discharged - 12/2006
            Officially Declared No Asset - 03/2007
            Closed - 04/2007

            I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

            Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...


            • #7
              WE were told to NOT let our insurance policy lapse, ours is rented. Even if it weren't though, the advice is the same. You ARE liable until someone else's name is on the title for everything that could happen at that house liability wise.
              Petition Filed 6/4/07 :clapping:
              341 meeting 7/31/07 :clapping: :unsure:
              First Meeting Held and Trustee's Report of No Distribution 8/2 :yahoo::yahoo:
              10/15/2007 - DISCHARGED!:yahoo::yahoo::yahoo:


              • #8
                What the atty told me is that if something did happen at that house that if they sued me it would just be included in the bankruptcy. What am I missing?

                And how do I contact the insurance company to find out how far in advance it's been paid without them asking me a zillion questions about my address. Do I lie to them and tell them that I'm still in the house?
                11/14/07 -filed C7 12/04/07 -case pulled for random audit.12/18/07 -341 held: Asset case due to engagement ring & tax return.02/19/08 - US trustee files motion to extend. 04/02/08- changed back to NO ASSET! I get my ring back and get to keep my tax return! :clapping: 04/28/08 -DISCHARGED!!! :yahoo::yahoo: 05/07/08 - CLOSED!!!


                • #9
                  I was in the same predicament as you. I moved out and they are foreclosing on my house. My attorney had said that I should keep the insurance on my house so that if anyone gets injured and sues, it will be taken care of. He had said if I didnt, they could sue down the road, after the BK was discharged and it wouldn't be good! However, due to financial circumstances, I couldnt afford to pay it and it was cancelled. My foreclosure sale was postponed from April 6th until April 20th and God only knows if it will be postponed again. I am just holding my breath and hoping that nothing happens before its all over and done with. I have not filed my BK yet, so if anything DOES happen, I hope I can include it in my BK. If not, I will just have to deal with it and move on. I swear I never want to be a single mom, homeowner again. It is way too stressful. I'll just be glad when the house is gone and my BK is over (sometime this summer).
                  Good luck to you & your family


                  • #10
                    I understand you need to "time your filing" for October or later. Do you not think they do not know what is going on by now? Your divorce is public information. The house is vacant, as you can see that from the street, and they know that you have moved.
                    In your discussions with your lender, if you cannot work out something that is good for both of you, then let them foreclosure. They may want to do that anyway to erase any other claims against your property. That is what I would do and I have been in the mortgage business for about 40 years.
                    That will take from 90 days to over 360 days depending on the state where your home is located. Only after that can they get a judgement if there is a shortfall from sales proceeds.
                    Getting insurance on a vacant house with bad credit can be hard and very costly; some would say imposible.
                    If there were a claim from a accident is not an issue, as your BK filing would discharge it.
                    I hope this helps, as this is what I would do if I was in your shoes.


                    • #11
                      A lawyer told ME to simply stop paying the insurance on a rental.

                      And he said it was as simple as that- stop paying anything connected to it.


                      • #12
                        ACK - this just stinks. I have advice from y'all and it is conflicting. Don't know what to do. I'm in such a bind about this.
                        11/14/07 -filed C7 12/04/07 -case pulled for random audit.12/18/07 -341 held: Asset case due to engagement ring & tax return.02/19/08 - US trustee files motion to extend. 04/02/08- changed back to NO ASSET! I get my ring back and get to keep my tax return! :clapping: 04/28/08 -DISCHARGED!!! :yahoo::yahoo: 05/07/08 - CLOSED!!!


                        Unconfigured Ad Widget