When do you stop paying home insurance on a foreclosed home?
Question by MKD: When do you stop paying home insurance on a foreclosed home?
Home Insurance
Our house was not sold at auction and now reverted to lender? We kept up with the home insurance. When does our obligation end for the home insurance? The realtor we talked to that was assigned to the home said we would be given 14 to 30 days before we had to move out. He would work on the 30 days. Our insurance is due the 25th are we still obligated to pay the insurance past that point or has the lender put their own insurance on the home? Our insurance agent has not returned my call into him.
Best answer:
Answer by Dion J
When the property is no longer yours, you can stop paying insurance.
What do you think? Answer below!
Tags: Foreclosed Home, Home Insurance, Insurance Agent, Mortgages, realtor
Not sure, but if you pay the insurance in full for the year, when you cancell, you will get a refund check for the remainder of time.
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If the house no longer belongs to you, then there is no reason for you to pay for insurance. Then only thing you would need would be something more like renter’s insurance that covers your possessions, but not the house itself.
Asap. the lender will pay it. it will ruin your credit though
Since the homeowners insurance is also covering your personal property and personal liability, I would not cancel the policy or stop paying until you physically move out of the home. In other words it is best to continue paying it until you move out. Once you cancel the policy the insurance company will send you a refund for the amount you overpaid. When the insurance agent returns your call, make sure that he or she understands that you are still residing in the home.
I am sorry that you have lost your home and wish you better luck for the future.
After you officially lose ownership of the house, it’s not yours any more – so you don’t have to insure it.
Did the title transfer out of your name? If so, you have no more insurable interest, and can let the insurance cancel.