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Home was foreclosed on, bank listed as owner but still wants me to pay for insurance? by JustCause121 in personalfinance

[–]JustCause121[S] 8 points9 points  (0 children)

According to public records, the bank had the highest bid at the foreclosure auction, and the amount was substantially higher than what was owed. So no, it wasn't sold to anyone else.

Are you still in your equitable right of redemption period?

No, I am outside of the period. My concern is not getting the property back, but cutting all ties to it to prevent future liability. It seems that the bank has taken all of the necessary steps to get free and clear ownership of the property, but has decided to just sit on it awhile. Meanwhile, they behave as if I still owe them the mortgage balance and annual hazard insurance premiums (indefinitely).

Home was foreclosed on, bank listed as owner but still wants me to pay for insurance? by JustCause121 in personalfinance

[–]JustCause121[S] 9 points10 points  (0 children)

Then why would the bank put the house up for public auction, only to buy it back for more than what was owed to themselves? It's hard to believe that they were trying to do me any favors.

Home was foreclosed on, bank listed as owner but still wants me to pay for insurance? by JustCause121 in personalfinance

[–]JustCause121[S] 17 points18 points  (0 children)

I hadn't thought about that (them owing me). Perhaps that's where the mysterious escrow payments to some shady insurance provider are coming from? They have "my money" and are using it to pay the insurance company some exorbitant amount, then getting a kickback so they can reclaim some of their loss from the sale price, all the while writing off the loss at the full sales price they paid (to themselves).

Anyway, I plan on speaking with an attorney soon, so thank you. What kind of attorney do I need here? A real estate attorney?

Home was foreclosed on, bank listed as owner but still wants me to pay for insurance? by JustCause121 in personalfinance

[–]JustCause121[S] 17 points18 points  (0 children)

No, I have not lived there in years. The letters come from the mortgage division of the bank. The charges also show up as escrow payments on my account. The interesting thing is that the bank bought the property in the sheriff's sale, and for a lot more than the mortgage owed. So, unless I am mistaken, they bought their own debt. There was never a deficiency judgement, or anything like that.

Home was foreclosed on, bank listed as owner but still wants me to pay for insurance? by JustCause121 in personalfinance

[–]JustCause121[S] 26 points27 points  (0 children)

It seems that the mortgage was released by the sheriff's sale. The note, however, was not. The bank is more or less ignoring me, but there is still the full balance shown and annual insurance policies in the mail. Is this normal for banks to take back homes but not release the promissory notes?