Home Insurance in 07006>Question Details

Cleo, Other/Just Looking in 07006

Hi its Cleo- They have no inclome to support expenses on the house no point in trying selling. ( please see below additional question details)

Asked by Cleo, 07006 Fri Sep 10, 2010

It was suggested that they should let the mortgage com know that they can not pay home owners, what do you think will happen?


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Ian A. Wolf’s answer
The lender may put a policy in place at the owners expense and it may only cover the banks interest for replacement value. It is important to note that it may not protect the owners from liability. At all costs I would recommend making sure a full and proper liability and replacement insurance policy is in full on the home. Otherwise the owner could be exposing themselves to some huge potential disaster financially. If there is one thing i wouldn;t mess around with, it is the insurance.
0 votes Thank Flag Link Fri Sep 10, 2010
Hi Cleo,
The mortgage company will put a policy on the house which generally costs more & they will take the money from the homeowners sale monies whether it be from their profit or if its a short sale that amount as well as all other necessary charges will be included in the final Hud & be paid directly to the bank not the homeowner.

Helen Cocuzza Realtor Associate
Better Homes & Gardens Real Estate Mary Holder
Direct: (732) 232-1614
Email: hcocuzza@maryholder.com
0 votes Thank Flag Link Fri Sep 10, 2010
If teh home owner does not pay their home owners insurance, the mortgage company can secure a policy for them and charge the home owner for it, it is like double what normal insurance costs and can be added to what you owe on the property.. In addition not paying your insurance is a trigger for them being abloe to call teh note and begin foeclosure.
0 votes Thank Flag Link Fri Sep 10, 2010
Hey Cleo -

It is always good to have insurance on a property that you own. They are liable if the home is uninsured and there is a fire or other disaster.

Good Luck!

Gerry Dunn
Associate Broker
Licensed in Maryland, Virginia and D.C. - 28 Years

0 votes Thank Flag Link Fri Sep 10, 2010
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