Posted on: 23rd Nov, 2011 09:38 pm
Hi there… I stopped paying mortgage on an out of state rental in the month of April this year. The home has been vacant this whole time. I thought the foreclosure would be a few months still now nothing has happened. Now, I have received a letter from my lender saying they want me to confirm whether I am maintaining the property or not as well as the current occupancy status. They want a written document. The letter further mentions that if they don't hear back from me, they will secure the property to prevent damage. They may change the lots, etc. They have also stated that the costs will be added to the loan.
Any suggestions on what I should do? The insurance is due by January for next year. I guess I am to pay that until the foreclosure goes though. But, do I have to tell the insurance company the property is vacant?
Any suggestions on what I should do? The insurance is due by January for next year. I guess I am to pay that until the foreclosure goes though. But, do I have to tell the insurance company the property is vacant?
Hi Jonathan,
You should inform the lender about the present property condition. As the foreclosure has still not taken place, it is your responsibility maintain the property and pay the insurance for it. I don't think you need to tell the insurance company that the property is vacant. You should rather request your lender to sell off the property asap so that you can get rid of it.
Thanks,
Jerry
You should inform the lender about the present property condition. As the foreclosure has still not taken place, it is your responsibility maintain the property and pay the insurance for it. I don't think you need to tell the insurance company that the property is vacant. You should rather request your lender to sell off the property asap so that you can get rid of it.
Thanks,
Jerry