When you buy a home using a mortgage loan, you're required to carry homeowners insurance. (If you're in the Chicago area, this is a good place to get home insurance from.) But what happens if you're in foreclosure?
Obviously, even if you're in foreclosure, you should still pay the premiums (if for no other reason, because the process takes a long time and the home is still yours and you signed that you will). But what if you can't afford it anymore? Do lenders take over?
Of course they do. They have the option to buy home insurance that names them the beneficiary or just paying the insurance that you have. It seems they do the latter. Of course, I only have anecdotal information.
But it struck me as an interesting question.
Obviously, even if you're in foreclosure, you should still pay the premiums (if for no other reason, because the process takes a long time and the home is still yours and you signed that you will). But what if you can't afford it anymore? Do lenders take over?
Of course they do. They have the option to buy home insurance that names them the beneficiary or just paying the insurance that you have. It seems they do the latter. Of course, I only have anecdotal information.
But it struck me as an interesting question.
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