2007-11-20 08:44:50 · 13 answers · asked by arelle 1 in Business & Finance ➔ Renting & Real Estate
You're SCREWED
2007-11-20 08:48:28 · answer #1 · answered by Anonymous · 1⤊ 1⤋
AcerMill is 100% correct regarding lenders force placing their own insurance to cover the property and add the costs to your mortgage.
The insurance that the lender force places will not cover your personal property - only their interest - the structure. The cost added to the mortgage payment is astronimocal.
My neighbor is currently in foreclosure, due to many reasons, but one of them is that her insurance company dropped her, she failed to obtain another policy. The mortgage company obtained an insurance policy for the property and her monthly payment went up hundreds of dollars. She was struggling before but now there is no way for her to afford the monthly payment any longer.
2007-11-21 01:07:25 · answer #2 · answered by ? 6 · 1⤊ 0⤋
If you do not have a mortgage, you are rolling the dice that nothing will happen to your home. If you have a problem (fire, storm damage, tree falls on it, etc.) you will have to pay for the repairs.
If the home is financed, you will receive a notice from your mortgage company that says you will either buy insurance, or they will buy it for you and charge you for it. The rates are ridiculously high, way more than you could find it for.
2007-11-20 10:42:19 · answer #3 · answered by godged 7 · 1⤊ 1⤋
The Insurance company contacts the mortgage company. That is not good because now the mortgage companies investment is not protected. The mortgage company will come after you.
2007-11-21 03:30:52 · answer #4 · answered by KathyS 7 · 0⤊ 0⤋
When the mortgage company finds out, and they will be notified by the insurance company, you we be foreclosed on for failure to keep insurance as stated in the purchase contract, or they will provide insurance upping your monthly mortgage, and when they provide it is not cheap
2007-11-20 11:33:21 · answer #5 · answered by Pengy 7 · 1⤊ 0⤋
They cancel your insurance and notify your mortgage company. The mortgage company will assign you expensive insurance. You won't pay that either and they will forclose on you.
Shop around and find a better rate if it is too expensive, but pay for the insurance.
2007-11-20 10:17:01 · answer #6 · answered by Tim 7 · 2⤊ 1⤋
I suggest that you visit this web page where you can compare rates from the best companies: http://COVERAGEFINDER.NET/index.html?src=5YAojmqfNU741
RE :What happens when you don't pay your homeowners insurance?
Follow 12 answers
2017-03-23 22:44:05 · answer #7 · answered by ? 6 · 0⤊ 0⤋
If you havent paid your policy renewal the insurance company simply doesnt cover you so any loss will be your problem . You can pay most policy by the month , so if you cant afford to renew for a year , renew it month by month or shop for another company that might be cheaper .
2007-11-20 08:54:21 · answer #8 · answered by mark 6 · 1⤊ 0⤋
If your home is damaged or destroyed, you have no coverage, and you are responsible to repair it on your own. If you have a mortgage on the property, most lenders will 'force place' their own insurance to cover the property and add the costs to your mortgage. You don't want to buy insurance that way. The cost is about three times what it would cost you purchased on your own.
2007-11-20 09:03:51 · answer #9 · answered by acermill 7 · 4⤊ 1⤋
as quickly as I had escrow, my lender needed to maintain a $500 surplus (purely in case belongings taxes went up). yet whilst your belongings vendors coverage is likewise in escrow, that would have some consequence if coverage costs on your area are uncertain. Are you in a typhoon companies area? fortuitously I have been given out of escrow with I refi'd in 2005.
2016-09-29 21:50:47 · answer #10 · answered by pellish 4 · 0⤊ 0⤋
If you have a mortgage on your home, the mortgage holder will be notified that your policy has lapsed and order you to reinstate coverage. If you own the home outright or are renting, then the policy will lapse, and you will no longer be covered in case of fire, theft, etc.
2007-11-20 08:57:26 · answer #11 · answered by Kathryn 6 · 4⤊ 0⤋