Bank owns property, im still payin insurance, and there was a fire!!

[WITHROWJ]

What is the name of your state (only U.S. law)? CALIFORNIA.


SO, WE LOST A RENTAL HOME IN FORCLOSURE THIS LAST SEPT. THERE WAS A FIRE A COUPLE MONTHS LATER IN DEC. BANK OWNS PROPERTY AND COME TO FIND OUT WERE STILL PAYING INSURANCE. SO, WE FILE A CLAIM. WHO IS ENTILED TO THE MONEY, EST. DAMAGES ALOMOST 40K. IS IT POSSIBLE THEY WILL SPLIT IT BETWEEN US?

IM DESPERATE TO KNOW....

 

[nextwife]

The money goes to bring the property back to the previous condition.

 

[ecmst12]

Turn off caps lock and delete your email address from your post (unless you WANT to be spam-bombed).

The money goes to the owner of the property. Either the insurance policy will be cancelled retro to when you lost ownership interest and your premiums will be refunded, or the claim payment will go to the bank.

 

[moburkes]

Turn off caps lock and delete your email address from your post (unless you WANT to be spam-bombed).

The money goes to the owner of the property. Either the insurance policy will be cancelled retro to when you lost ownership interest and your premiums will be refunded, or the claim payment will go to the bank.

If you're no longer living in the property your coverage ended long ago anyway. But, yes, the insurance company should back date your cancellation, so you'll get a small refund from that.

You will not be able to profit from this. Is that what you were thinking?

 

[WITHROWJ]

fire and insurance issues

Im not sure that we are looking to profit, it would of course be nice. The claim came in at 55,000. we were thinking it would be nice if they just split it with us of course. We were more curious of our rights, being that we were the insured party at the time of the incident.

 

[moburkes]

Im not sure that we are looking to profit, it would of course be nice. The claim came in at 55,000. we were thinking it would be nice if they just split it with us of course. We were more curious of our rights, being that we were the insured party at the time of the incident.

Why would they "split" it. The bank owns a house which has been damaged by fire. The house is worth less than what they lost on the home through your foreclosure. The money will allow them to rebuild the home and sell it - for a profit, hopefully.

While you were listed on the policy you need to have an insurable interest in the property at the time of the loss. Since you no longer own the house, you no longer have an insurable interest. If this was life insurance, you wouldn't need to prove insurable interest at the time of the loss - only at the time of the purchase of the policy. But in personal property insurance you need insurance interest at the time of the loss. That's why you'll get a refund for overpaid premiums.

 

[WITHROWJ]

thanks for the advice...you seem quite knowledgable in this area, do you do insurance?

 

[WITHROWJ]

Ill actually be quite irritated if the bank gets all that money. I have a sour taste in my mouth over the whole deal. This was my home for four years, when I married, my husbands job forced us to move when the market here in CA had droped terribly. We had put almost 80k of our own money over time into this fixer. We tried to sell but just couldnt, we had to rent which worked out okay for about 1yr. Then my husband had back surgeory and I was out of work with a new baby. My husband not working and we lost our tenant, we made two house payments on our own, on the thrird month we explained to saxon morgt. that we didnt think we could make next months payment. Could we do a loan modification. They said no. Until we missed a morg. payment they wouldnt conisder doing one. So, we had to miss a payment. Tried to a modification with saxon four times, and was denied each time, said they dont do rentals. we couldnt refi, sell, nothing. So we hired a loan modification company who screwed us out of 3k. Found out after 6mo of working with them, the day of the forclosure sale that they couldnt help us. So we tried working with saxon once again to do a short sale, which we didnt want to do in the beginning because we wanted to save the property. They denied us once again. A whole yr. of honestly trying, and we still loose. Screw them if they get all the money. Sorry, im bitter.

 

[WITHROWJ]

guess I kind of contridicted myself when I said it wasnt about the money. I just dont want them to profit from my sweat equity when I dindt want to loose that property. I did mostly want opinions on what my rights were legally, since i was the isured person, it was just a wierd deal.
Thanks for all the replys, they were helpful.
Jamie

 

[moburkes]

thanks for the advice...you seem quite knowledgable in this area, do you do insurance?

Yes, this is what I do.

I understand your frustration, but, unfortunately, that's not the bank's problem. You still shouldn't "profit" from this. You didn't lose anything in the fire. Insurance is to make you whole, as in, return the property to it's pre-fire condition. It is not to line anyone's pockets.

Sorry about your luck. I'm a single mom, had a new baby, and was in school by her 2nd week, and back to work by her 6th week. And had another toddler as well. I didn't have the luxury of being home with my child simply because she was a newborn, and it doesn't sound like you could afford that luxury either. In this country it's not a right to stay home, when you've got bills to pay. It also sounds like you and your husband didn't have disability insurance either...

Not trying to be rude, but you still don't get to profit from the fire.

 

[JustAPal00]

You putting the blame on the bank is completely wrong! Loan mods are a gesture for people to keep their homes, not their investment properties! You took out a loan and couldn't pay it back, why are they to blame for that? Quit blaming everyone else and accept responsibility for your own actions, You chose to move and it turned out to be a bad decision.