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Will mortgage insurance automatically be canceled if the property goes through foreclosure Can the insurance company make you continue to pay or come after you for money after foreclosure?
Wiki User
∙ 15y ago
I believe this question deals with Mortgage Insurance, not homeowners insurance. After foreclosure the lender will file a claim with the mortgage insurer. The claim is paid and since the mortgage is no longer in force the policy is void and no further claims can be made. Since the policy is no longer in force there are no premiums to be paid. The insurance company will not come after you unless they discover that you obtained the mortgage (thus the insurance also) by fraudulent means. If that is the case they will come after you. Also, any losses that the lender incurred beyond what the insurance paid are still collectible. It will be reported to the credit agencies and they will continue to try to collect from you. Homeowners insurance is one of the peripheral issues that families facing foreclosure must deal with. While it is possible that the county can take the home through a different type of foreclosure for unpaid property taxes, and the mortgage company will be pursuing a lawsuit for the defaulted mortgage contract, there is little the homeowners insurance company will do upon nonpayment. However, this does not mean that property owners have nothing to worry about.
There are two most likely scenarios when homeowners begin missing their mortgage payments, and what happens with the insurance will relate to how the premiums are paid. The issue may be handled differently depending on if the owners pay the insurance on their own or if it is paid monthly through the escrow on the mortgage. Most homeowners, though, escrow their property taxes and insurance through their monthly mortgage payment.
Typically, when payments are missed on an insurance policy, the coverage will continue for a period of months. If something happens to the house, the owners will be covered by their policy, although the amount they have fallen behind will be deducted from total awarded to them for the accident. However, if numerous payments are missed for longer than just a few months, the policy will lapse and the owners will no longer have any coverage.
What may happen at this point is the mortgage company will buy its own homeowners insurance for the house, and they will add the monthly premiums to the amount owed on the loan. If the homeowners want to get back on track with the mortgage, they will have to pay back this extra amount for the forced insurance. Lenders will also not shop around for the best rates, so the monthly cost for the policy may be quite a bit more expensive than the owners were used to.
Of course, this should not be an issue at all if the homeowners pay the insurance through their monthly payment to the lender. The bank will keep paying the taxes and insurance to make sure the policy does not lapse, while adding the amount of these missed payments to the total needed to reinstate the loan. Any insurance payments the lender makes will be included in the payoff and foreclosure judgment.
Wiki User
∙ 15y ago
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On a foreclosure who pays the difference in principle?
There are several possibilities. 1) The lender may continue to pursue the borrower for the money after foreclosure. 2) The lender may just write off the loss. 3) depending on the mortgage insurance situation, the insurance company may contribute.
How does a foreclosure work if it is due to an agreed order with the mortgage company while in Chapter 13?
The foreclosure will simply continue as it normally would have if the bankruptcy had not been filed, except for any special provision made in the order allowing the foreclosure to cotinue.
Will your be son be responsible for the mortgage on the property left to him in your will?
Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.
What happens in foreclosure if you have filed bankruptcy?
In most cases, foreclosure action is suspended until the BK is ruled upon either by discharge or dismissal. The mortgage holder may request a stay from BK proceedings, if it is granted the foreclosure process as defined by the laws of the state in which the residence is located will continue.
If loan was paid in full prior to foreclosure. how do i get it off of my credit report?
If the Foreclosure proceeding had already begun it will remain on the credit and should show a zero balance. But it will continue to show the Foreclosure was in effect at that time. If it is still showing a balance contact the credit bureau to have the information updated. You must have proof in hand.
Does a auto insurance policy get canceled when the policy holder dies?
Generally, an auto insurance policy does not automatically cancel upon the policyholders death.The policy will typically continue to provide coverage to the executors of the policyholder's estate until the end of the policy term.
On a foreclosure who pays the difference in principle?
There are several possibilities. 1) The lender may continue to pursue the borrower for the money after foreclosure. 2) The lender may just write off the loss. 3) depending on the mortgage insurance situation, the insurance company may contribute.
Can a property with easement can be foreclosure?
The easement does not affect the mortgage. Therefore, the foreclosure can continue.
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You don't. Canceled means you never downloaded whatever you were downloading.
What happens if the person filing for foreclosure dies?
A person doesn't "file for foreclosure". A bank or other lender takes possession of property by foreclosure procedure after the owner (mortgagor) of the property has defaulted on the mortgage. The procedure varies in different states. If the mortgagor dies during the foreclosure proceeding the lender can continue the foreclosure process against the estate. The death of the mortgagor may delay the proceedings until the heirs have been given notice of the foreclosure, depending on how far along the foreclosure has progressed. If the mortgagee (lender) dies during the foreclosure proceeding their estate representative can continue the foreclosure once appointed by the court.
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Yes. The tenant owes the rent to the landlord, right up until the foreclosure sale happens.
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What is a relief from automatic stay?
Relief allows the creditor to continue collection actions/foreclosure/repossession.
How does a foreclosure work if it is due to an agreed order with the mortgage company while in Chapter 13?
The foreclosure will simply continue as it normally would have if the bankruptcy had not been filed, except for any special provision made in the order allowing the foreclosure to cotinue.
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They probably didn't get enough jobs to continue airing the show. Or they didn't get enough of a good income for the show to support it. Either way, the show is canceled.
