Foreclosed Home

I think she is saying that she owns her home that she live in and owns another home that she rented out which she isn't paying on now

Yes, they can put their own homeowners insurance on it, and it's usually a pretty hefty price. I'm not sure about the answers to your other questions, but don't assume it's in foreclosure. A friend owned a condo and moved out. She purposely stopped paying and wanted to let it go into foreclosure. Fast forward 2.5 years and the bank did NOT foreclose and she was still responsible for all missed payments.

If you haven't paid for the home in over a year, then by all means give it up and let go of that stress. Are renter's paying you and then you are turning around and using their rental payments towards your other bills? If so, then they need to be given a fair notice so they are not shut out of their home. It's happened to several of my friends who were renters, whose landlords defaulted on mortgage payments. Seriously, consult a real estate attorney and do the honest thing.

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Pay the insurance. You can not afford to pay for the house if it burns down. That is the right thing to do. That is the least you should do. The neighbors don't deserve to live next to an abandoned home that has been burned down. Without insurance, it could become worse for them. Think about if YOUR neighbors starting acting this way. The home you own would be worth less, you could not sell it, and you would be exposed to additional risks of vadalism, fire, etc...

The house have to have insurance if their is a mortgage on it period. You are not in foreclosure until they bank notifies you that it is. Just because you stopped paying doesnt mean much. Right now a lot of banks are taking their sweet ole time on the process.

I am not sure on this, so I would get a lawyer, but if you default on a loan they often can, and should, come after you for some kind of payment.

You need to talk with a real estate attorney for answers to most of your questions. Even if your home is in foreclosure you still need to maintain insurance on it until your name is off the property and you no longer own it. If it were to burn up tomorrow you would lose the house but still owe the entire balance to the mortgage company..

I suggest that you would've been notified if the company had begun foreclosure action. You need to talk with the mortgage company and see where your loan stands. I'm surprised that they haven't communicated with you about your non-payments.

Your current home is not a part of your mortgage and therefore cannot be taken from you. If they have a court order, and I don't know if that's possible even, they can take money out of accounts no matter where they're held. I mean I don't know if getting a court order for money from bank accounts is a part of foreclosure. I doubt that it is but I don't know. I'm saying that it doesn't matter where your money is located if they can legally attach it.

I'm amazed that you haven't discussed this with the mortgage company. They will be honest about what they can and cannot do. You just cannot do business without having information. I'm also amazed that if you haven't made payments in a year that you still own the property. I'd think they'd have begun foreclosure proceedings long ago.

You do have options in a situation such as this. I have a friend who legally returned his rental property to the mortgage company without going thru foreclosure. I don't know much about short sales but I think that is an option also.

What is important for you to know that as long as the house is yours you're only hurting yourself by not insuring it. You owe the money whether or not the house is still standing, until foreclosure is completed. You also need liability insurance to cover you in case your tenants sue. I urge you to talk with an attorney.

Hi S.,

When you mortgaged your home you signed tons of papers... I'm sure one of the papers was that you would provide insurance on the home and if you didn't they would provide it for you for a cost. It will cost you more and they can add it to the amount you owe them. The bank holds all the cards. Consult an attorney. About the only way to protect your home is through some sort of bankruptcy if you can't catch up the payments. Only an attorney can advise you on what specifics you need to do.

Good luck to you.

M.

So, am I understanding that you have not had contact with the bank in a year? That will probably make them less likely to work with you...CALL NOW!!! Is this rental property being lived in? Are you collecting rent from someone and not paying the mortgage? All these things will affect the outcome. Also, I know that when you have a car loan and you do not carry insurance they can/will put insurance on it that will protect their investment and they will bill it to your account. I am guessing it is the same for a house, but I am not positive. Again, all of these questions can be answered by calling the mortage company that has your loan...probably would be in your interest to call a lawyer as well.

They can certainly force Homeowners Insurance as it is part of the contract you signed with them to get the mortgage. Until the home is taken over by the bank it is in your name and belongs to you thus you will be responsible if something (such as a fire) happens to the house.

I don't think it really matters if you move your accounts. They can take a lien against anything you have regardless of where the money is held.

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If you don't have a lawyer call the Bar Association in your county or city. They will give you a referral to a lawyer who will charge you $35 or maybe a bit more but nothing like their regular fee. It's just for the one question or questions about the exact situation.
You pay on the spot and you will then know the answer to whether or not they can do what they say they can.
Under the current laws written by the Republican Deregulation teams since Ronald Reagan successive Republican Administrations have taken down all the regulations from the New Deal that kept our economy going. Bankers are bandits with fountain pens since the Bush years due to the lack of government oversight.

Do you have renters in there and if not, why not!! Have you tried or considered selling the property and working with the mortage company. Yes they can place the insurance on it and it is usually more costly! They can touch your accounts no matter what bank they are at so moving them would only be worse for you in the long run. J L had some great advise, and also it is probably not in foreclosure until you have been notified by your mortage company so you are very much responsible for this property.