never4putt asked:
We have defaulted on our mortgage payments but have not started the foreclosing process. If we can not carry home owners insurance and, say for example, there is an earthquake and the house crumbles. Can the lender come after us for any of our assets?
We have defaulted on our mortgage payments but have not started the foreclosing process. If we can not carry home owners insurance and, say for example, there is an earthquake and the house crumbles. Can the lender come after us for any of our assets?
You are liable for everything. But in CA, homeowners insurance does not cover earthquake damage anyway. You would have to carry separate earthquake insurance (see CA Earthquake Authority).
Home insurance is actually very flexible. I’m not sure about California laws and regulations, so I recommend you visit a nearby homeowners insurance agent. They should be able to help you.
Absolutely. YOU are responsible for the full loan amount, until the house title transfers from your name. After it’s sold at auction – regardless of damages – you’re STILL responsible for the difference between the sale procedes and the loan balance.
Not only that, but if someone is hurt on the premises, while you own it, YOU ARE ON THE HOOK for the injury! Pain suffering, medical payments, the works.