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.....

