Supporting, Informing & Connecting People in Foreclosure

Homeowners Insurance and loss payee

I was paying my homeowner's insurance monthly to my insurance company, and when the renewal came up last year, BOFA went ahead and paid the yearly premium to my insurance company. I want to change my homeowners insurance to another company, so that I can start paying it again, as my current company said they have to accept BOFA's payment. I do not want BOFA claiming any rights because they are paying the insurance. Question would be BOFA is named as loss payee on the current policy, so has anyone heard of anyone leaving the servicer off the policy?, or even if you can?, as you are disputing the servicer's standing. Maybe an insurance company will not even insure if you don't name one? I obviously will ask the new insurance company if they will allow it.

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Permalink Reply by woodknotgo on January 16, 2012 at 9:35am

Hello,
Do/did you have an Escrow Account-Taxes & Insurance with BOA ?It makes a huge difference.
In my situation & a neighbor we tried to pay our own Taxes & Insurance, but because of Escrow it was not allowed. My neighbor was Flooded-6 months of applications & appeals to FEMA Flood Insurance paid $85,000. The bank took it ! After the house was vacant for many months it was trashed, vandalized & the bankservicer had to report to Sheriff & file claim & of course once again they took the Homeowners payout. The Insurance checks are usually made out to both parties-Homeowner & Bank-but evidently BOA does not need a Homewoners signature to claim the funds. There are stories of homes burning to the ground, complete loss and the Banksters continue to Foreclose and receive the Insurance.
Keep up your fight-consult with an Insurance Agent ........

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Permalink Reply by washingtonstate on January 17, 2012 at 1:37am

Originally there was no escrow setup. I paid the taxes and insurance.

I fell behind on my taxes and BOFA started paying them. Like I mentioned, I had been paying my insurance company all along, and then when the premium came due BOFA just paid the yearly premium. Thanks

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Permalink Reply by Colby Rose on January 17, 2012 at 11:18am

Please let us know what comes of this, as it is an area of interest/concern for many who visit Foreclosure Hamlet.

Of note, a series of interesting discussions about this topic was prompted by a guest blogger over at Credit Slips last summer. (The guest blogger was University of Minnesota Law Professor, Daniel Schwarcz, who specializes in insurance law, IIRC.)

Here is a link to one of his posts, but he wrote several on homeowners insurance-related topics-so you might just want to follow the links within the specific posts. There were lively discussions about the topic in the comment sections of each of the posts, by the way, so don't skip the comment sections! :-)

http://www.creditslips.org/creditslips/2011/07/homeowners-claims-an...

Good luck, and I will be anxious to hear if you have any success in securing new homeowners insurance.

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Permalink Reply by washingtonstate on January 18, 2012 at 9:15pm

Thanks. I read through the posts and comments.

I only found a portion (quote below) in a comment from a link referenced in the post, that addressed having a policy without the mortgagee, but nobody made any comments on that.

"Also, is there a way to get homeowner's insurance on one's home without the involvement of the lender with whom the homeowner is in litigation? There are instances in which the lender listed on the insurance policy is not the proper party in interest--is there a way a homeowner can fix that?"

Hopefully other people will know of anyone with an experience regarding this? Who is the true mortgagee in the first place??? By naming the Servicer as the mortgagee on a new policy, is that alluding to admitting that they are???

Thanks

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Permalink Reply by ali on January 17, 2012 at 10:48pm

I have the same very question. This is what I have done< I called my insurance co. and asked them to please send my bill directly to me. They said they would. I intrnd to call them again and confirm, as I surely don't BOA to get double paid and want to make sure the proceed really gotwards our house. Next I am going to do the same w/ taxes, and see just who comes forward to claim otherwise. I also try to keep track of title co.'s and their assn.'s, I'm sure they hate it when I play spupid and call them up for anwers to my questions. I found fraud at origination on oue VA loan and I call the broker every other day, I say "I just want to be clear about what you told me". I get alot of info this way. If they want to play games, I guess I'm as good as they are. I'll fight to the end, anyway I have to!!!!!

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Permalink Reply by Stephanie Ross on February 23, 2012 at 11:38am

I am so happy to see people so concerned about there insurance. Home Insurance is so important and yet so many people place such a low priority on it.

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Permalink Reply by Phred Maldonaldo on February 26, 2012 at 10:46am

One thing to look at is your note and deed of trust terms. If insurance and taxes are stated in the terms to be paid by an escrow account, then lender likely has unquestioned right satisfy terms of contract.

If insurance is not specified in the contract, then it depends on statutes in your state. If a real attorney was consulted, they might see it as an unsolicited third party contribution to your well-being, especially if you are challenging the standing of the lender to foreclose.

As I am not an attorney, the above should not be construed as legal advice ... in fact, it would be foolish to follow such opinion without consulting a legal professional.