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Old 08-03-2007, 11:48 AM
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Default House in foreclosure, lender trying to fail an...

...insurance claim...? My friend's house is in foreclosure but she continued paying the homeowners insurance in case something happened to the house before it was auctioned.When she moved out, she took the dishwasher with her. Supposedly the house sold in auction on July 18. She just rec'd a call from her insurance company saying that the mortgage company had filed a theft claim for the dishwasher and a hole in the wall. Can the insurance company file a claim against her insurance? Something just doesn't seem right. How can they sue her for the balance of the loan and try to make her pay for the repairs?? Can anyone shed any light on this?
That was supposed to be "file" in the subject line...not "fail." Sorry!
That didn't answer the question. She is aware that she has to pay the balance due between what she owed and what the house sold for. She didn't trash the house. She took the dishwasher. That's it. The question was, can the lender file a claim against her homeowners insurance for the dishwasher being gone as well as require her to pay the deficiency??
She knows that she will have to pay for the house and whatever is gone...but can the mortgage company file an insurance claim with her homeowners insurace?
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