Can you lose your house if you have no homeowners insurance?
Tuesday, February 24th, 2009 at
8:59 pm
Jay S asked:
My baby-mamma’s insurance was cancelled & she has not made the effort to get a new policy for almost a year. Can the mortgage company take her house?
My baby-mamma’s insurance was cancelled & she has not made the effort to get a new policy for almost a year. Can the mortgage company take her house?
Tagged with: Company House • Homeowners Insurance • Mamma
Filed under: Homeowners Insurance
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i think that if the bank finds out they can get insurance on the house and charge the owner for it.
Absolutely yes. Part of a standard loan agreement is that you will protect the lenders collateral. If you don’t get fire insurance the lender can either get it for you–at a higher price than you will pay, thank you–or foreclose on the loan.
I would think if they were going to take it, they would of by now. Usually they don’t take a property back, they just purchase insurance themselves and charge it back to the home owner.
You are just paying less principal when you pay your mortgage payment.
Your baby-mamma’s? Grow up man. The mortgage company will put their own insurance and make her pay for it…and it’s not cheap.
They won’t take her house BUT they will place a policy that will protect their interests. It probably will cost a LOT more than what she could get on her own and probabably will NOT protect her interests, i.e. her equity and personal property. The cost of the policy will be added to her mortgage escrow account.
Absent owner paid insurance, the bank will cover the property with ‘lender placed insurance’, which is outrageously expensive.
If she does not pay the costs of the lender placed insurance, it’s entirely possible that foreclosure action may be taken so the lender can recover its investment. If your ‘friend’ checks her mortgage documents, she will discover that she has agreed to this process at the time she signed the mortgage documents.
For the most part the homeowner policy amount is built into the mortgage, so one pays a piece of it every month. Eventually the mortgagee will discover this, and warn her to get insurance by a certain date, or be canceled, and face paying the entire mortgage amount, or have her property sold, as the bank owns the property, not your baby-mamma(whatever that is).
Yes. Eventually. They’ll put forced placemetn coverage on the house, which costs about 10X what regular insurance costs (and only covers the bank, btw). Then if she doesn’t pay the extra, they’ll foreclose.