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Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33200
Experience:  15 years real estate, Realtor. Landlord 26 years
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I filed bankruptcy (including my house) in 2010 when I was

Customer Question

I filed bankruptcy (including my house) in 2010 when I was diagnosed with cancer. We managed to keep making the payments for 4 years until we could just no longer do it and decided to let it go into foreclosure. After a year or so the mortgage lender contracted a company (last fall) to put a lock box on the house (while we were still living there). We weren't home so they broke in.
We moved out in Oct. / Nov. and turned off the utilities and notified the lender that we were no longer living there (and offered to provide the keys).
The insurance on the house ran out in Jan. and the lender is demanding that we continue the insurance or they will and charge us for what ever the premium is.
Can they do this?
Submitted: 7 months ago.
Category: Real Estate Law
Expert:  Barrister replied 7 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question.


They can place "forced insurance" on the property to insure it under your mortgage agreement, but it is kind of moot point because if you included the mortgage in the bankruptcy, then your personal liabilty would have been discharged when your BK was over. Even if you excluded the house from the BK, they would have to hire an attorney for a few thousand dollars to sue you for the premium costs in court. Since you aren't making the payments on the house already, then they likely don't want to throw good money after bad in trying to sue you for money that they won't likely be able to recover.


So I would opine that this is simply a bluff on their part to try to scare you into keeping insurance on the house to protect their interests..





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