Insurance Claim After Bankruptcy
My question involves insurance law for the state of: Washington
Short Explanation:
Declared CH 7 in 2007. Mortgage discharged
2010 House destroyed by disaster
late 2010 - Bank finally starts forclosure proceedings
late 2010 - Insurance company sends joint check for damages
2011 - Forclosure still not through
What should I do with the insurance check? If I sign it and send it to the insurance company, Im sure they will just cash it and apply it to the mortgage which I am no longer liable for. Does it mater if they apply the money after the forevclosure is complete? The Bank seems clueless that the house is gone even after sending them letters telling them....they still intend to sell it at auction. The insurance proceeds are not enough to repair the home. So say the morgage is 100,000 and the insurance check is 80,000....the check will just lower the mortgage to 20,000 and it will still be auctioned right? Can I ask the Bank if they are willing to negotiate on this. The problem is that the have NEVER replied to any letters sent to them.....certified....etc....
Dont know what to do.....
Re: Insurance Claim After Bankruptcy
The check is issued in the names of you and the lender?
Re: Insurance Claim After Bankruptcy
Quote:
Quoting
Mr. Knowitall
The check is issued in the names of you and the lender?
Yes it is.
Since the Lender is listed as leinholder.... I am pretty sure I have no right to the money myself....however it doesnt seem fair that the bank gets paid off and I loose out on
the equity value of the property....
Re: Insurance Claim After Bankruptcy
Quote:
Quoting
Maji King
Yes it is.
Since the Lender is listed as leinholder.... I am pretty sure I have no right to the money myself....however it doesnt seem fair that the bank gets paid off and I loose out on
the equity value of the property....
Equity value? The house is being foreclosed. How are you losing out on anything? Due to the BK, you will owe nothing at the end of the foreclosure. The bank is the only party that is injured here.