Foreclosure in California>Question Details

Diane Friedm…, Home Seller in Monrovia, CA

Do I keep paying my homeowners insurance when in foreclosure?

Asked by Diane Friedman, Monrovia, CA Fri Feb 13, 2009

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If home is in foreclosure has title passed to lender yet? If NO recommend paying till you vacate home if something happens what covers your content, personal belongings.
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1 vote Thank Flag Link Fri Feb 13, 2009
I am not an attorney and cannot provide legal advise. My opinion is that you need to have homeowners insurance for the period the home is still under your ownership meaning still titled to you to protect you. Once the foreclosure is complete and title has returned to the bank then you need to cancel the insurance.
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1 vote Thank Flag Link Fri Feb 13, 2009
Word of advice, Don't tell your Insurance agent that you are no longer at the premises and in forclosure until the Deed changes from your name to the lenders name. Learned that the hard way. If you move and still need insurance for another property tell them you are still deciding what to do. Because once you tell them you are in forclosure and no longer there they will drop your policy. I did not even realize that they dropped our policy until I got a letter from B of A. telling us we needed to find homeowners insurance. Now I can not find anyone besides B of A. and it is a lot of money! It has turned into a big mess!
0 votes Thank Flag Link Tue Jan 29, 2013
We recently moved out of our home that is in foreclosure & up for short sale. B of A sent us a letter stating that continued "vacancy coverage" was required or they would purchase it for us & the cost for coverage would be billed to us. Our current HOI provider does not cover such homes. I googled & found no company willing to insure a vacant home in foreclosure. I contacted BofA to find out if they had any insurance companies in their box of tricks to offer me...they said (after 4 department transfers) they usu use Balboa Ins. & otherwise I should just let them find insurance for us when the time comes. I called Balboa Ins & the number wass the BofA insurance dept...same people I had talked to before. I plan on trying to find my own...but basically, if your home is vacant & in foreclosure...you're screwed!
0 votes Thank Flag Link Tue Sep 27, 2011
We recently moved out of our home that is in foreclosure & up for short sale. B of A sent us a letter stating that continued "vacancy coverage" was required or they would purchase it for us & the cost for coverage would be billed to us. Our current HOI provider does not cover such homes. I googled & found no company willing to insure a vacant home in foreclosure. I contacted BofA to find out if they had any insurance companies in their box of tricks to offer me...they said (after 4 department transfers) they usu use Balboa Ins. & otherwise I should just let them find insurance for us when the time comes. I called Balboa Ins & the number wass the BofA insurance dept...same people I had talked to before. I plan on trying to find my own...but basically, if your home is vacant & in foreclosure...you're screwed!
0 votes Thank Flag Link Tue Sep 27, 2011
Yeah Right! . . . . . . . . . . . . .
Nope!
0 votes Thank Flag Link Tue Feb 17, 2009
Tough call in your mind because you can't fathom the thought of paying any additional out of pocket expenses when it has to do with a foreclosing lender.

I know from current experience, unfortunately. The temptation was so great that I nearly allowed my policy to lapse which would have caused me huge headaches in reinstating it if I changed my mind. I asked my insurance carrier what could happen if I didn't renew my annual insurance binder "because I was in escrow to sell my home and escrow was due to close very soon" (not the truth but I was afraid of the truth). My insurance carrier told me that it would cost me an entire year's premium in advance to get it started again if I went without homeowner's insurance under their coverage for more than 60 days.

I don't know if I really believe that since I've been such a good client for many, many years but I didn't want to go through that scenario as well as take the chance that my home and all that I have left could be taken by theft or fire. It was the contents of my home and potentially liability if someone where to get hurt on my property that convinced me to pay my relatively small monthly payment to continue coverage.

I would suggest it to you too. Good luck!

Diane Wheatley, Broker
diane@moveupproperties.com
(909) 981-5589
0 votes Thank Flag Link Fri Feb 13, 2009
Besides protecting the property from damage such as ,fire, earthquake, flood...it also protects your possessions and liability if someone hurts themselves at your home. I am strictly guessing but I would keep mine. Check with your insurance agent. Good luck...

Jeff and Cheryl Fox

Properties Plus
818-995-9108 Office
800-917-8080 Toll Free
818-207-2013 Cell
Email: mail@jeffandcherylfox.com
Webstie: http://www.jeffandcherylfox.com

16133 Ventura Blvd. 7th Floor
Encino, CA 91436
Besides protecting the property from damage,,,fire,,,earthquack,,,flood...it also protects your possesions and liability if someone hurts themselfs at your home. I am strictly guessing but I would keep mine. Check with your insurance agent. Good luck...
0 votes Thank Flag Link Fri Feb 13, 2009
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