U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-22-2013, 09:46 AM
 
1 posts, read 3,790 times
Reputation: 10

Advertisements

my new refinance company has added their name to my homeowners insurance before the closing is thislegal .
Rate this post positively Reply With Quote Quick reply to this message

 
Old 09-22-2013, 10:52 AM
 
Location: Bloomington IN
7,254 posts, read 8,902,153 times
Reputation: 18438
Quote:
Originally Posted by ROsemarie Luke View Post
my new refinance company has added their name to my homeowners insurance before the closing is thislegal .
Yes, it is legal and many lenders do this to protect their interests. It doesn't cost you anything extra.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-24-2013, 11:26 AM
 
Location: Mount Laurel
4,181 posts, read 10,048,885 times
Reputation: 3488
Quote:
Originally Posted by ROsemarie Luke View Post
my new refinance company has added their name to my homeowners insurance before the closing is thislegal .

That's the standard practice for finance company to put their name in the declaration page. Without it, you would not be able to get a loan.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-05-2017, 11:35 PM
 
1 posts, read 752 times
Reputation: 10
When paying for home insurance on a new home before closing can I pay the years premium upfront with cash or do I have to have proof of where the funds came from?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-06-2017, 01:57 AM
 
Location: DMV Area/NYC/Honolulu
19,810 posts, read 9,128,059 times
Reputation: 19371
I didn't "need" before closing, but it was understood that if I didn't buy on my own before closing then the condo association would have one waiting for me and then subsequently bill me.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-06-2017, 08:44 AM
 
Location: Saint John, IN
11,578 posts, read 4,839,101 times
Reputation: 14704
Quote:
Originally Posted by jacquevinton View Post
When paying for home insurance on a new home before closing can I pay the years premium upfront with cash or do I have to have proof of where the funds came from?
Lenders will typically want a homeowners insurance policy paid in full at the time of close. You can either pay for it before close or some lenders will allow it to be put in your closings costs. They don't care where the money comes from to pay for the policy! Lenders are not going to close on a loan without their interest being insured.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-18-2017, 08:04 PM
 
479 posts, read 436,257 times
Reputation: 658
When I bought my first home in 2000, a old house along the gulf coast in Florida I never thought much about insurance. When I tried to purchase a policy I was rejected by every company I applied. Closing was coming up and the real estate agent representing the property said he had it covered , no problem. We closed on schedule with insurance in place. Less than 3 months later nationwide cancelled , as I learned was state allowed. Thus my knowledge began on Florida insurance crisis which started after hurricane Andrew in 1992. It was a nightmare on my new but very old home purchase.

By 2003 we could only get a surplus line carrier not recognized by any state regulation and the coverage was not only awful but the premium was 3,500 k a yr. for a $125,000 small home.

Things got worse in 2004 after 4 hurricanes hit or threatened Florida and blamed for the insurance crisis, but in fact it started in 1992 after Andrew.

In 2005 the rates were $5,400 a yr and loss of the home was sure. State rules wouldn't allow joining the newly formed citizens pool due to the fact I was offered a private policy. So I didn't qualify for the state backed plan.

Luckily that changed in 2006 when my rates went up $7,600 a yr for a $128,000 home.

What I learned was the real estate mofo secured home owners so he could make his commission at closing, knowing damn well I would be cancelled within the grace period and in deep trouble on a old house that cost exceed what I could pay to make upgrades for code. I also learned if the state of Florida had not created a gov run insurance risk pool the state economy would have collapsed. Insurance companies cherry pick but when risk has to be paid out, they leave.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-18-2017, 08:34 PM
 
479 posts, read 436,257 times
Reputation: 658
I am still living in this old home today, though I have bought 2 others since then . I am getting ready to sell this place. I don't know how to handle any questions about home owners to a new sucker buying in this vey expensive insured area over flowing with dated old home stock. There are no options of merit and the criminally allowed home owners scam rides high in 2017.

I am talking about wind mitigation, not even flood inurance and the greedy real estate goons that candy coat these cost to new buyers. My current rates are $1,650.00 a yr with 5% per wind event out of pocket, the house still valued about 130 k. Of my 3 properties the most expensive. Compare to my Dads home in Virginia valued at about 750 k and nearly 4,000 sq ft where he pays about $900 a yr.

I have no flood ins, not requied nor a claim in 17 yrs. Nor has Florida had any hurricanes in 12 yrs until last yr and they weren't major. Record profits for over a decade and when a hurricane does finally hit watch the greasy greedy POS insurance companies run.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-19-2017, 05:36 AM
 
Location: MID ATLANTIC
8,156 posts, read 20,046,386 times
Reputation: 9396
Quote:
Originally Posted by glenn_1000 View Post
Was wondering about that since it was listed as "Closing/Escrow Fee". Are there any upfront fees directly related to setting up an escrow?
It is customary in the secondary market (where loans are bought and sold) to charge 1/4 point for you to pay your own escrows (taxes and insurance). Some lenders (portfolio) will allow borrowers to pay insurance without the charge. Some lenders will waive the charge, but many can not.

One item to correct of what someone said, the first year you pay at closing. If you are making monthly payments that include taxes and insurance, what you are paying is not double payments. It may feel like that, but it's collecting the renewal to renew your policy in a year.

A word of caution - borrowers paying their own escrows need to be very careful and pay those bills immediately. If the lender does not have evidence of renewal by the anniversary date, they can and will obtain what is called a force-placed insurance policy, likely 3x the current premium. This can quickly put a borrower in arrears with their payment. In fact, that is how most find out about the forced policy, by getting past due notices.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top