Not necessarily a bad thing. Once insurance comes in a totals it all out, they might get paid off.Lender:
"Our condolences. Now, you've got 90 days to drag that ****ebox back on its footers and get a payment in the mail!!!"
Funny you should mention that. We used to do insurance loss inspections for a lot of big lenders. We noticed that many of the claims were filed by owners who were in default on their mortgages. Some were bogus. Many of those properties ended up on our trashout lists months later.
While that might be true. There are those who continue to pay it until they leave. Those are the ones that may benefit from it.Most who stop paying mortgage stop paying insurance and taxes as well. That would rest on the bank.... Now, the question is, are they on top of it? I dont think so....