Legal Question in Real Estate Law in Pennsylvania

Re: Do I have to pay for insurance

Did you and/or the mortgage company make a claim for damage caused by the 2007 fire? If so, the insurance proceeds are often paid to the mortgage company first, to pay off the loan, and the rest to the owner. When there is a major fire that severely destroys the home, the mortgage company may allow the insurance proceeds to be used for reconstructing the home.

If the house is totally damaged, there is no property left to insure for damage to the house itself. You would still need insurance for liability to others who might be injured on your property.

The benefit to you of the escrow for insurance was that the insurance should have been paid for and kept in force by the mortgage company. Upon payment of proceeds of insurance to the mortgage company, you no longer owed any money on the mortgage. The mortgage should have been released in the Recorder of Deeds records. You would still be able to sell the land.

If there was insurance, why are you still required to keep making payments on the mortgage and escrow? That's what you should be asking the mortgage company. If it failed to keep the insurance paid up with your escrow payments, you may have a claim against the mortgage company.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.