Voluntary Repossesion / Insurance Claimgreenspun.com : LUSENET : Repossession : One Thread
Our house is currently being repaired for subsidence damage, which the insurance company (same as the lender)delayed (for one year)in starting. We're now going to leave the country and as a result may have difficulty selling the house whilst its under repair. Financially it seems one option is to simply hand the house over the insurance company voluntarily and make no further interest payments. What are the implications of this ?
Or can I claim for loss of value ? or for mortgage interest from the insurance company
-- Norhafiza Mohd Said (firstname.lastname@example.org), September 28, 2004
If you leave the house permanently and give up possession of it to your lender, they will sell it and you will be liable for any shortfall between what they sell it for and what you owe.
You cannot claim off your insurers for loss of value - your insurers wil reinstate the property so as to put you back in the same position as you would have been had the subsidence not occurred.
Walking away from a problem never solves it!!
-- David J. Button (email@example.com), September 28, 2004.