Is Home owners insurance need after moving out of a foreclosed house before the Sheriff's sale

I can't understand why you would need to carry morgage  insurance on a house you no longer own. Morgage insurance is only needed if you carry a morgage on the house to insure that in the event of your death the morgage would be paid in full by the insurance carrier. You no longer own the house as it's been forclosed  upon, so why would YOU need the insurance? I think you need to contact your bankruptcy lawyer to find out what they (the morgage company) are trying to pull. Generally in a bankruptcy and forclosure you cancel the insurance. Since it has reverted back to the morgage company they are responsible for insuring the house, as they are the only ones who will benefit from it in the event of a fire, wind or hail damage, vandalism, etc. YOU would not benefit from it in any way so why would you need insurance? I'm sure he or she will tell you the same thing. Sounds like someone is trying to pull a fast one, don't fall for it.

I agree with Annette. None of this makes sense, especially the comment below;

"I called them and they stated that the insurance was not needed until after the sheriff sale."

The  foreclosure results in the transfer of ownership from you to the mortgagee, and the Sheriff's sale results in the transfer of ownership from the mortgagee to a third party. So you no longer own the house but someone thinks you need to buy mortgage insurance for the new owner? I don't think you can legally do that even if you wanted to. To insure property it must first be in your name.

I am going through this same thing.  We forclosed and had to do bankruptcy October 2008.  Everything was fine I thought until just yesterday 9-1-09.  First, When we moved out of the forclosed home we went to our rental house.  The attorneys office said we needed to keep our insurance on our house untill it was surrendered.  That seemed fair.  I called up my insurance company and wanted our rental insurance to be switched to a home owners insurance.  State Farm rep said we couldn't do it until we surrender the other forclosed home.  Okay.  Well March or April of 2009 we received papers stating it was granted for the surendered.  They put their own locks on the doors.  We didn't have a key to the home to get in they did.  So You would think surrender back to the bank would be..it is all the banks right...Wrong..Well you remember when i was saying i wanted to switch my insurance from rental to homeowners...My insurance company said oh you realize you have a very big claim on your other house.  I ask how?  I don't know but it was through the mortgage company.  I ask how.  They said sometimes before it get surrendered mortgage company sends someone out to check out the house and if anything is wrong with it then they file a claim.  When we surrendered the house to them they check it out.  Everything was fine 4-09 and now they put a claim 8-09 for 4-09.  And are insurance is responcable for it.  They had a lock and the key and we are responsable.  Hows that?  The house is going up in sheiffs auction soon and no one , our attorney, insurance co, or friends can tell us anything.  Our insurance asked well if the house doesn't sell do you have to keep carring insurance..I said don't you know i don't know... Who knows about this crap.  We have an attorney they got their money now we don't get help, insurance company deals with this shit daily and we don't get no help..anyone out there?  Oh Lord please bless all these people who don't have help with the forcloser laws and help.  Please help them get through the rough and tough times of forcloser.  Please Lord send someone or something to those who need help because we oh Lord are just average working people who stumbled on a hard time and would love to get this behind them and proudly move on.  Lord give us your Holy Grace, Wisdom and good health to deal with life while going through these dark areas in our lives.  In Jesus Name We Pray, Amen

Do not pay those bastards a dime. They illegally stole your house, forcibly (if needed) kicked you out if you didn't leave voluntarily, and if you check the public records (I'd bet you a steak dinner) the property is still in your name, not the bank which is why they are trying to stick you with the bill.

I'm rescinding 5 mortgages for fraud and Countrywide/ B of A happens to be one of them. Can't explain here but suffice it to say I know the fraud being perpetrated and help homeowners

Run down to the courthouse and find out if the property has been conveyed to the bank or it's still in your name.

Chances are it's still your house since they want you to pay the insurance bill.

Check it out and I can point you in the right direction but do not pay a dime, Take care of yourself and your family if you have one, and if you want some more info google "countrywide fabricated evidence" to start on your path.  Also B of A paid an $8 Billion out of court settlement for fraud on the part of Countrywide.

Once you learn the fraud you can get your house back if you want to go down that path.

Hope that helps, but most important, hold on to your cash. I guarantee B of A doesn't have your original note and had no "standing" to even foreclose in the first place.

contact me if you need more info

BofA is doing it to me also.  I surrendered my home in Ch7 and was discharged on 9/22.  BofA got a final judgement of foreclosure on 9/2 in violation of the automatic stay.  On 9/28, BofA filed a motion to vacate the judgement and sheriff's sale which the court granted.  My name is still on the title and since there is a covenant that runs with the land, I must pay for the monthly maintenance fee and keep up the grounds.  The tax bill comes in my name but will not pay. I checked on other foreclosures that have no equity and HOA fees and the sale on all have been canceled. The banks would rather "walkaway" and have the owner of record pay all the fees and upkeep than take title on something they may not be able to sell for a long, long time. My only hope is the County will sell it after next June for 2 years back taxes.

We are experiencing the same thing. Our property is in short sale and an offer has been made. We have filed for bankruptcy and discharged in July 2009. We have surrendered the property in our bankruptcy petition. We just got a letter from B of A Insurance Dept that we need to provide homeowner's insurance or else they will take care of it for $24,000. We don't have that kind of money. I really don't know what to do. If we get insurance, it should cover October 2009 to October 2010 per B of A. This is really depressing since we are really trying to move on and recover from our downfall.