Legal Question in Real Estate Law in Georgia

Re: foreclosure

Read your loan documents to see what you agreed to as far as insurance and what the lender can do.

Re: foreclosure

It's called "force place" insurance. The lender has an interest in the collateral (the house) and can require that it be insured against loss. In your loan agreement there is likely a "force place" clause which allows them to purchase insurance if the coverage you had kept on the collateral had lapsed. As Answer # 1 indicated - you should look to the documents you signed at closing - they spell out the agreement that was formed in the process of getting the mortgage. If it's in the agreement, yes they can. (And it is very unlikely that a serious mortgage lender would have neglected to obtain this authority in their standard agreement.)