Homeowner insurance question in light of BK & foreclosure

[housepoor10]

Kevin, you can contact your banks property preservation dept. they should be able to tell you the date they were informed of such and why. Usually what they do, (the property people that show up) come over walk around the yard, look in windows if they can see in, check utility meters to see if they are still running, look for signs of the lawn being taken care of. They can be misled by a neighbor I am sure. I would also be sure that you take care of the yard, and never, never leave curtains open where they can see in. Also, turn on the porch lights at night.......these people have been known to change locks, have another extra truck pull up and take peoples things worth anything, then after they remove what they want, take a photograph and tell the bank "this is how we found it". If you do not believe me, just google safeguard property preservation complaints, and you will see an eyefull. this is just one of the companies that banks hire to check on people, they are nothing but a band of thieves......so be very careful. Also do not expect to get straight answers from the banks property preservation, but they should tell you how and why the property was reported as vacant. If you have to, notify them via certified mail of your still being in the property, and want no funny business.......all sorts of things are happening in this regard, and it is every man for himself. The bank is supposed to "order" the lockout, so make sure they know you are still in there.......

[KevFinnerty]

Strange update to this situation.

My insurance policy was supposedly paid/renewed. However the insurance company contacted me and told me that they were "notified" that the property is vacant, and because of that reason they are terminating the policy sometime next month.

I told them that it is NOT vacant and that I am still living here. What happens next with that I guess I will find out.

Frustratingly, I have been dealing with this "we have been notified that your house is vacant" nonsense for the last 2 months with my bank/mortgage holder. I remarked about this in some different threads. No matter how many times I tell the bank I am still living here they still seem to want to persist with this "we have been notified that your house is vacant" nonsense and every month they send some kind of strange person to snoop around and even speak with my neighbors. I've told them to stop doing that but they said they "have to because of something to do with Freddie Mac (????)".

I'd really like to know who it was that originally "notified" my bank or the insurance company that my house was vacant in the first place and get them sorted out, and how to get the bank to stop snooping around every month. I fear now that this "we have been notified that your house is vacant" nonsense is rippling around in strange ways I have no comprehension of and could affect something else I don't know about like mail delivery, or some kind of homeowner association status, or even police/fire/ambulance type services, or God knows what.

[keepsmiling]

Wishing you good luck. Stay positive, something will turn up.

[debee]

Sorry, Kev. I hope you find work soon. Hang in there.

[KevFinnerty]

I guess it will depend if there's enough in your escrow account. You could call your insurance company at the end of the month to find out. If it's renewed, then there's no issue. If not, then you decide. Meantime, focus on the big positive: living rent-free and saving that money.

Thanks. Unfortunately I haven't been able to find a job so I've not been saving any money. I didn't think things would drag on as long as they have here. I need to find something....

[debee]

I guess it will depend if there's enough in your escrow account. You could call your insurance company at the end of the month to find out. If it's renewed, then there's no issue. If not, then you decide. Meantime, focus on the big positive: living rent-free and saving that money.

[KevFinnerty]

Thanks very much for your reply.

I guess I could get some kind of renter's insurance for my stuff at that point, but I don't know if I should even bother, because (a) maybe it is not even my stuff if the trustee is going to take it (although he SHOULDN'T since it is all within my exemptions), (b) I really don't have much of value left anyways, and (c) if someone breaks in and steals everything I have left it would be less I have to move anyways. Sigh.

[debee]

Once insurance runs out the lender will get some insurance to protect their investment. The building will be covered, but you and your stuff won't have any protection. They name themselves as loss payee.

I don't think anything will happen to you if you continue living there. You're like a free live-in security guard from the bank's perspective. The risk of vandalism skyrockets once you leave so they rather have you there than not. They might send you a bill, but you can ignore it. They have to get the insurance whether you're there or not, and it's part of the cost of the foreclosure.

[KevFinnerty]

Background: (skip this part if you already know my story from other postings)

My house was in foreclosure, delayed by my Chpt 7 BK. The bank filed for relief from the stay (this was last November) but afaik nothing ever happened since then - I've received no notifications of any kind about a foreclosure hearing, and my property has yet to be put into the county's list of sheriff sales (I've checked their website frequently). So as far as I know the foreclosure process hasn't moved forward. I am still living in the house and want to stay here as long as I can.

As far as my bk goes, I am an asset case (the house is my only asset above my exemptions afaik, it does have equity above what I owe the bank) and my debts have been discharged. I (or my lawyer) has received nothing from the trustee as far as what is going to be happening as far as the trustee taking/selling the house, or anything else.

In the meantime, my homeowners' insurance is up for renewal the end of this month. The bill for the insurance goes to the bank and it gets paid out of my escrow (although at this point I have no idea how much if any $$ is even in that escrow account). I only know I do not have the means to pay this insurance premium myself. Oddly, I have been receiving many insurance policy offers from multiple companies over the past month saying things like "public records show your home insurance coverage is about to run out - our quote is such & such - please call us to get a quote etc".



My Question(s):
--------------
Will the bank go ahead & pay the next premium if the escrow - whether or not it has enough $ in it to cover the premium?

Am I responsible for home insurance coverage if I continue to live here?

And What happens if I don't pay for any???


I've gotten conflicting advice on this so far (or really none at all) - I asked my current insurance rep & he said the bank will probably pay it and he'd let me know if they do. My lawyer basically had nothing to say other than "You can ask the bank if they are going to pay it".

Anyone familiar with this kind of situation??

Thanks.