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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 53675
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I had a property I received a line of credit on. I sold the

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I had a property I received a line of credit on. I sold the property and the bank froze the line of credit. Which is fine I understand. What I don't understand is that for the past 5 years the bank has been making me buy home owners insurance on the property I sold and no longer own. I have called repeatedly over the years and they keep adding $2000 every year for the insurance to what I owe on the line of credit. I have told them over and over I don't own the property anymore but nothing. Why should I be paying for homeowners insurance I don't even need?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. You have no such obligation since you no longer own the property and the loan is therefore no longer secured by the property. If the bank will not reimburse you for these expenses, you should file a suit against your bank to force the issue. This will give you the leverage and collection options you seek because once the suit is filed and a judgment awarded, you become a judgment creditor, and if the losing party doesn’t then pay the judgment, you can have the sheriff serve a summons on the losing party for a debtor examination. That forces the losing party to meet you in court and answer questions under oath about the losing party's assets. After that information is obtained, you actually have the power to attach bank assets to satisfy the judgment. It will never come to this, however; if you are forced to sue for your judgment, the bank will pay you before you have to attach its assets.

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Customer: replied 3 years ago.

I can recoup those charges even though I am still paying off the line of credit. The bank has changed names in the last 2 years as well.

Thanks for following up. Just because you still owe an outstanding balance does not give the bank the legal right to add invalid and inapplicable charges to increase that balance. You have the right to sue them to get the balance reduced to eliminate these invalid charges.
Richard and 3 other Real Estate Law Specialists are ready to help you
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