Legal Question in Real Estate Law in New York
Foreclosure
My home has been foreclosed on. The insurance on the property has just been paid through escrow for the coming year. When I cancel that policy should the money refunded go back to me or to the bank that foreclosed?
2 Answers from Attorneys
Re: Foreclosure
I'm not so sure the money will even be refunded. It all depends on the terms of the escrow, mortgage, note and policy. I tend to think that if you get a refund check, it will be purely by accident.
Re: Foreclosure
The return will depend upon several matters. Will the foreclosure satisfy the mortgage. If the house is sold at foreclosure for less than the mortgage balance, plus interest, penalties and fees, you may still owe the bank money. They would then probably seek the refund to be restored to the escrow and then reimburse themselves from the escrow for any mortgage shortfall. There is insufficient information about the foreclosure to offer a complete answer at this time.
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