House in foreclosure, lender trying to fail an...

[Get a life]

...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?

[877YouKeep]

I find it hard to believe they filed a claim, although why did she allow the house to go to REO? There are so many options out there to stop foreclosure even if she has to sell the house. My personal opinion is that she should have stopped paying the insurance if she wasn't trying to workout a solution to stop foreclosure. The mortgage company would have force placed a policy and she could have saved the money although the force placed insurance would not cover her belongings just the home. It could be possible once the house went into REO that the mortgage company did place insurance on the property and they are filing a claim against their insurance.
Are you sure there was a deficiency judgment entered? I have not done short sales for a while, I know the big lenders are not going after homeowners for the deficiency just 1099, does anyone know of any mortgage companies that are filing judgments?

[Corey1023]

Just finished one with HSBC and supposedly the former homeowner is saying that she received something about a deficiency. Shes in her 5th BK filing between her and her domestic partner, so showing they are insolvent will be no trouble, but since you asked I thought id throw it out there that I've heard of one, I haven't read it yet however to see what they actually sent her.

[LossMitigation]

well then there you go, we need to compile lender rules so we can ultimately help each other because that is what it is all about.