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Force placed Insurance

Posted by Andrea Dela Pena on February 4, 2013 at 2:57pm in Short Sale Discussions
Hello All, I would like to get your advice regarding the force placed insurance. In this scenario, I was the seller on this short sale transaction. My home insurance was canceled on Nov 9th 2012 when they found out that the property was vacant. But then we had the closing on Jan 15th this year. Between this period ,My lender found out that my insurance was canceled and put their own insurance (forced). I did not get an insurance anymore since it would be matter of days to closing. But then, after a week of closing , they sent me a notice of paying the insurance. Should I pay it or not? I don't want to pay it since the short sale transaction is done and the lender already released me from this lien. I live in central Florida. Thank you in advance for all your inputs.

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Replies

  • Wayne Brooks February 7, 2013 at 6:13am

    I assume any forced insurance premiums would be an obligation from the lender  to the insurance carrier, since the lender ordered it and you have no relationship with the new carrier.  Your obligation to the lender, for these costs along with all other monies due, would have been addressed in the short sale.  Assuming you received a waiver from your lender, it would have been included by default.  Just my opinion.

  • Andrea Dela Pena February 7, 2013 at 2:49am
    Thank you for all your replies. I tried to ask this to my lawyer and even my agent but it seemed they got no interest about it after the transaction. They won't give me any answers. Well, I'm will just have to ignore it. Regards.
  • Bryant Tutas February 5, 2013 at 7:52am

    That's a good question. Sounds like there was a time delay on the lender side between when they received NET figures from the investor and when the payment for the insurance was made.

    Should you pay or are you obligated to pay is a question for an attorney.

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