Do I need homeowners insurance during foreclosure?

Due to extended unemployment, a required out-of-state move, and inability to sell my home, foreclosure is underway. My homeowners insurance company hasn’t received payment from my mortgage escrow and is asking me to pay the bill. Obviously the mortgage company isn’t going to pay anything out of escrow right now. Do I need to keep homeowners insurance on the home while waiting for foreclosure to be finalized?

By | 2013-08-27T23:19:34+00:00 August 27th, 2013|Mortgages Home Loans Interest Rate|4 Comments

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4 Comments

  1. Doctor Deth August 28, 2013 at 12:59 AM - Reply

    if something happens to the house while you still technically own it and you don’t have insurance – you could be up a creek

  2. DannoREA August 28, 2013 at 12:35 AM - Reply

    Inform the mortgage company to disburse fund to the homeowner’s company immediately. They’re not entitled to the money they’re holding in escrow for you. The Homeowner’s insurance company is.

  3. witz1960 August 27, 2013 at 11:43 PM - Reply

    If the bank has to sell your house at foreclosure they will still want to come after you for the difference. If the house burns down uninsured, then the difference they will chase you for will be much greater.

    Is that extra risk worth it to you?

  4. Angie August 27, 2013 at 11:32 PM - Reply

    Look at it this way – what if the house burns to the ground. Then whose going to pay? You will be fully responsible. However, I’m surprised that the mortgage company isn’t paying. I used to work in a foreclosure department, and we were always sure that insurance was up to date, in case of such an occurrence. I would call your mortgage company to find out its status.

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