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A house had not been paid for in full with unknown years left on the mortgage.
Back in mid April an auto accident caused by the driver of a truck damaged the house. The resident had to move out due to the nature of the damage. Though the police faulted the driver the insurance company is balking at paying the claim. Last week the owner passed away at his other home where he was staying due to the damage to primary residence. Since the house was not fully paid for it seems the bank is now the owner or they will be after probate. The bank should not want to acquire a dwelling with extensive damage. They could of course sell it as is. The estate no longer has interest in the insurance claim because the owner passed away and surrender it to the bank after probate. Can the bank force the insurance company to pay so they have a repaired dwelling to sell? Why or why not under the somewhat rare circumstances.
A house had not been paid for in full with unknown years left on the mortgage.
Back in mid April an auto accident caused by the driver of a truck damaged the house. The resident had to move out due to the nature of the damage. Though the police faulted the driver the insurance company is balking at paying the claim. Last week the owner passed away at his other home where he was staying due to the damage to primary residence. Since the house was not fully paid for it seems the bank is now the owner or they will be after probate. The bank should not want to acquire a dwelling with extensive damage. They could of course sell it as is. The estate no longer has interest in the insurance claim because the owner passed away and surrender it to the bank after probate. Can the bank force the insurance company to pay so they have a repaired dwelling to sell? Why or why not under the somewhat rare circumstances.
The first question is how long was the mortgage not paid?. If the home owners insurance was paid. Insurance is in place to protect the home owner, as well as the lien holder (the bank). If so, the bank assigns an agent to work out the details with the insurance company. Since the home is vacant, assume there will be no sense of urgency.
If there was a lapse of insurance coverage from the premium not being paid. The it is up to the bank to integrate repairs to make the property sell able. If the property taxes are not paid, then the county foreclose, the property is auctioned off the pay for the back taxes. The bank should not want to acquire a dwelling with extensive damage? The bank in their interests - is going to do a Net Present Value test to determine the least costly, or most profitable action.
From what everyone knows the property taxes and insurance and mortgage payments were up to date and the estate will continue the pay them until the house has to be surrendered to the bank. If that is the result. I guess there is a chance the estate can get the insurance company to pay up and get it repaired and let a friend or relative live there or rent it out. Based on everyone's own housing locations it is likely they will just let the bank have it when probate is over. We have no knowledge that the mortgage payments have stopped. If so the bank will claim the house in probate as well as any other creditors who think they are owed financial assets.
From what everyone knows the property taxes and insurance and mortgage payments were up to date and the estate will continue the pay them until the house has to be surrendered to the bank. If that is the result. I guess there is a chance the estate can get the insurance company to pay up and get it repaired and let a friend or relative live there or rent it out. Based on everyone's own housing locations it is likely they will just let the bank have it when probate is over. We have no knowledge that the mortgage payments have stopped. If so the bank will claim the house in probate as well as any other creditors who think they are owed financial assets.
As long as mortgage, taxes and insurance are up to date, the bank isn't coming after the house. The estate sells it.
The house gets fixed, sold......and if there is any profit (equity).........that profit can pay any outstanding claims against the deceased's estate (medical, credit cards, etc).
Or...was there actually a reverse mortgage on the property?
As long as mortgage, taxes and insurance are up to date, the bank isn't coming after the house. The estate sells it.
The house gets fixed, sold......and if there is any profit (equity).........that profit can pay any outstanding claims against the deceased's estate (medical, credit cards, etc).
Was there a reverse mortgage on the property?
The estate does not want it. They all live thousands of miles away. They may be paying the bills and when probate is over, with the home owner deceased, tell the bank to take it.
If they wanted to retain the house they would get a lawyer to get the insurance company to make the repairs. When the guy died his family left the insurance claim alone.
We'd guess the bank has lawyers too and can get the house repaired at the expense of the liable party which is the insurance company. We'll post more if other details emerge.
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