I have done my closing on my new home and my move in date in 10/11/07. My broker/realtor put on the settlement paper that I had already paid for insurance on the house, I guess from now to December. He basically lied so that I won’t have to pay anything on the closing day. He told me to get in contact with the insurance agency so that I can set up a payment arrangement. Should I not pay it? What will happen? Will I get in trouble with the gov’mt?
2007-10-08 09:05:54 · 9 answers · asked by Al 2 in Business & Finance ➔ Renting & Real Estate
Hazard Insurance is a REQUIREMENT of the lender, and there is no "lying" to it..the loan processor MUST have verification directly from the insurance carrier of CURRENT coverage in place, or the loan WILL NOT CLOSE.
I will guarantee it. It must be insured the day of closing and must be in effect for a minimum of 6 months.
Insurance companies are REQUIRED to notify the mortgage company if you don't pay your insurance, and there will be documents that you will sign at closing, if at any time you don't pay the premium, the lender has the right to put forced lender insurance on your property...and the premiums are usually 4x what you would have had to pay on your own, and if you don't pay it, they will foreclose.
Go to an insurance carrier, get it in place, and save yourself a headache. Your Realtor/Broker is an idiot.
2007-10-08 09:18:00 · answer #1 · answered by Expert8675309 7 · 0⤊ 0⤋
If the insurance is not paid within 30 days the company will cancel your policy. Insurance is necessary in case of fire, theft, or any other catastrophe. Also your lender will be able to take action against you if they learn the property is not insuranced and if anything happens to the home you will still be responsible to pay off the mortgage if the home is destroyed in a natural disaster and you don't have insurance. If you can't afford the couple hundred dollars, you probably shouldn't be buying a house.
2007-10-08 16:11:06 · answer #2 · answered by lepr0kan 5 · 0⤊ 0⤋
.You need the insurance. GET IT AND GET IT NOW. also get flood insurance. You won't be sorry unless your caught without it. By the way there is no debtors prison anymore however; Catastrophic loss of a home more then 75% in debt means the debtor can opt for a jail term on a supervised work program until the debt is paid under the 75% point. In short they can put you in jail if something happens to your house and your not insured.
2007-10-08 16:11:54 · answer #3 · answered by aswkingfish 5 · 0⤊ 1⤋
If you have a loan, the lienholder will require insurance. If you don't have it, they will foreclose on you. Why would you not want to have your house insured? So much can happen and since it is such a large amount, why would you not want insurance? If you never have to use it, then you are lucky, but if your house is damaged or burns down, you would still have to pay for it and yet not have anyplace to live. Not smart. Do you have insurance on your car? Please don't run into me. . .
2007-10-08 16:48:16 · answer #4 · answered by towanda 7 · 0⤊ 0⤋
The lender requires you have liability, structure, and fire insurance before the sale closes at the end of escrow. You decide if you want to insure the contents, buy flood insurance, or earthquake insurance.
2007-10-08 16:11:28 · answer #5 · answered by holey moley 6 · 0⤊ 0⤋
Usually you cant close unless you have house insurance..Call who your loan is thru and ask them first.Plus it's taken out in your closing cost..Check your contract also..And yes you do have to have it..if you dont then your loan person willl get it for you and you dont want that it will cost you a fortune.
2007-10-08 16:10:52 · answer #6 · answered by ? 6 · 1⤊ 0⤋
If you do not provide insurance for your home, your mortgage company will. Why wouldn't you insure your biggest asset?
2007-10-08 16:16:45 · answer #7 · answered by godged 7 · 0⤊ 0⤋
You have to buy homeowners' insurance. If you have a mortgage, the bank requires homeowners insurance.
2007-10-08 16:09:46 · answer #8 · answered by regerugged 7 · 1⤊ 0⤋
Make sure you have the ins. paperwork he said you had. Beyond that you need ins.
2007-10-08 16:10:11 · answer #9 · answered by FORD-MAN 5 · 0⤊ 0⤋