Homeowners just cancelled my policy on house!

[technoreid1]

Homeowners just cancelled my policy!

They said we cannot insure a vacant property. (my home is vacant but not yet in foreclosure)

Should I inform my mortgage company about this?

Also do you think I should tell my mortgage company I am going into a BK?

thanks for any input...

techno

[ssdsco]

Homeowners just cancelled my policy!

They said we cannot insure a vacant property. (my home is vacant but not yet in foreclosure)

Should I inform my mortgage company about this?

Also do you think I should tell my mortgage company I am going into a BK?

thanks for any input...

techno

Only after Allstate pointed it out to me when I called them on something else did I find out my policy didn't cover the house if it was vacant. Should have read the fine print.

I wound up getting insurance through my mortgage company.

If your home owners insurance is cancelled I believe the insurance company notifies the mortgage company.

[Boscoe]

How did they find out it was vacant?

[technoreid1]

I told them it was vacant....


Stupid me huh? I Tell the truth and look what happens....

But what if I didn't tell them it was vacant and then I had a claim and then they realized it was vacant..... I dont think the claim would have gone through.

Do I need liability insurance????
I am going bankrupt shortly if this matters??

thanks, techno

How did they find out it was vacant?

[technoreid1]

That is correct - the insurance company WILL notify the mortgage company and then the mortgage company with place "FORCED" insurance on the home at a high rate and then try to bill me for it.....

But I heard that the "FORCED" insurance would only be for the structure ONLY, not liability..... This is what I was told by a Farmers agent.

God forbid if someone breaks into my vacant home and breaks their legs and then tries to sue me for their broken legs.

My question is that DO I NEED LIABILITY insurance on the property while it's still in my name? And what about when I file my bankruptcy? Do I need it then??

Thanks, techno

Only after Allstate pointed it out to me when I called them on something else did I find out my policy didn't cover the house if it was vacant. Should have read the fine print.

I wound up getting insurance through my mortgage company.

If your home owners insurance is cancelled I believe the insurance company notifies the mortgage company.

[FreshLikeADaisy]

Techno, I can't answer your question about liability insurance, but I can tell you that if they do the forced insurance thing, it all gets rolled up into the same debt that will be discharged in bk. I know that doesn't help much, but... good luck!

[BKcrazy]

I just got different insurance on my place that I'm not in. But, I said it was going to be sold, and I needed short-term insurance. I said I was currently out-of-state. No issues.

I've heard American Family Insurance is supposed to be ok. Or try www.netquote.com to get quotes.

[BKcrazy]

But, if you file BK after foreclosure, I believe your credit would take two hits instead of one? My attorney said it will show my condo as surrendered in BK rather separate.

[technoreid1]

sounds like a plan, but I have a credit card lawsuit pending and need to file our BK pretty quickly......


My attorney said forget the liability insurance.... weird.....

I guess I just feel liable because the house is in my name.....
(but what are the chances of someone actually getting hurt on my property and then suing?)

What about just trying to give the house back to the bank? (dee in lieu of foreclosure)

thanks, techno

No here is why...dont file BK until the house is foreclosed and the lender owns it. Then you have no liability (unless someone gets hurt on your property and waits to notify you) but after they own it your free and clear and then file. Hate to file and then have a large uninsured claim pop up later. Also post no trespassing signs on the property. Nail them all over the house.

[BKcrazy]

sounds like a plan, but I have a credit card lawsuit pending and need to file our BK pretty quickly......


My attorney said forget the liability insurance.... weird.....

I guess I just feel liable because the house is in my name.....
(but what are the chances of someone actually getting hurt on my property and then suing?)

What about just trying to give the house back to the bank? (dee in lieu of foreclosure)

thanks, techno

Maybe your attorney thinks it's a side issue right now and that there are other things to focus on. Deed-in-lieu can be hard to get. I had to stop paying my mortgage on purpose (well, I'd have stopped soon enough, cause oh, NO MONEY), list the place and wait to see if they would even consider it.

If you file BK, that takes care of your property, just give it back that way. I asked about a deed-in-lieu after filing, and he said do not sign anything from them at all, just give it back in BK.

You could just tell an insurance company that you have it up for sale, cause if you think about it, it's going to be sold.

[technoreid1]

Sounds logical......

Why is a deed in lieu difficult? Is there any advantage for us to do a deed in lieu as opposed to just putting the house into the BK?

Talked to my attorney he said will not matter if I do a deed in lieu or list it in the BK.... he said "does not matter"

thanks, techno

Maybe your attorney thinks it's a side issue right now and that there are other things to focus on. Deed-in-lieu can be hard to get. I had to stop paying my mortgage on purpose (well, I'd have stopped soon enough, cause oh, NO MONEY), list the place and wait to see if they would even consider it.

If you file BK, that takes care of your property, just give it back that way. I asked about a deed-in-lieu after filing, and he said do not sign anything from them at all, just give it back in BK.

You could just tell an insurance company that you have it up for sale, cause if you think about it, it's going to be sold.

[FreshLikeADaisy]

BKcrazy, yes, I filed bk six months after foreclosure, and yes, I now have two hits for the price of one.

On the other hand, it did streamline the bankruptcy process considerably... I'm not trying to save a house or any other assets that are non-exempt, so it became simple enough that I could go pro se on the bk.

As far as i know, the only REAL consequence to having a foreclosure on my credit bureau -- my once perfect credit was already completely trashed by that point anyway -- is that I will have to wait longer after bk to get a mortgage, according to FHA lending guidelines. But I'm not exactly in a hurry to become a homeowner again either, so I think it will work out in that regard.

[BKcrazy]

BKcrazy, yes, I filed bk six months after foreclosure, and yes, I now have two hits for the price of one.

On the other hand, it did streamline the bankruptcy process considerably... I'm not trying to save a house or any other assets that are non-exempt, so it became simple enough that I could go pro se on the bk.

As far as i know, the only REAL consequence to having a foreclosure on my credit bureau -- my once perfect credit was already completely trashed by that point anyway -- is that I will have to wait longer after bk to get a mortgage, according to FHA lending guidelines. But I'm not exactly in a hurry to become a homeowner again either, so I think it will work out in that regard.

I wasn't even going to try to save my place. I'd gone to a real estate attorney a couple months before I decided to go BK. I'm in no rush to buy a place myself. And I don't have anything for the trustee to take, unless he wants my college school books. Um, right. I'd rather just coast and get back on my feet without more things to worry about other than what to snack on and what job to find.

[BKcrazy]

Sounds logical......

Why is a deed in lieu difficult? Is there any advantage for us to do a deed in lieu as opposed to just putting the house into the BK?

Talked to my attorney he said will not matter if I do a deed in lieu or list it in the BK.... he said "does not matter"

thanks, techno

Well, just from my point of view, it's a hassle. I had to list my place, and sign a contract for 3 months. (along with not paying my mortgage on purpose, but then the money wasn't truly there ). I only had one person show up to look at it. Plus I was packing and really didn't feel like keeping the place clean 24/7 in case of someone coming to be a Lookie-Lou. Even if you do everything the mortgage company wants you to, they can still say no. They were also rude as hell as to me. I had gone through a govt approved non-profit agency for help with that, and they had all my financials and were going to forward it to the mortgage company. The guy from the mortgage company said no, you tell me everything right now. I said, it hasn't changed since I spoke with them, and guess what, I'm done being yelled at and promptly hung up. There is no real advantage with a deed-in-lieu. At least what was explained to me. If they do accept, you can still have to pay taxes if you get a 1099. And I'm not 100% sure the govt will forgive those either. My BK attorney said they may, but let's not have you be the example they try to set and not forgive it.