Do I still have to keep home insurance on a vacant home if I'm negotiating a short sale or can
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You have several problems:
1. Insurance companies won't insure a vacant house. In the event of a loss, if they find out it was empty (and the total absence of furniture is a dead giveaway), they will deny your claim.
The reason they deny it is because the potential for damage is sky high when no one is residing in the property.
2. Cutting off the air/heat will cause a smell to develop in your home, toilets won't flush, etc. It will stink to high heavens because of the trapped air.
3. No buyer is going to PAY to have utilities turned on in their name for an inspection...the house isn't theirs and you aren't going to find someone willing to do that. That is your job as a seller.
4. The bank will never carry the insurance.
5. The Realtor is 100% correct about keeping up the maintenance...and you can get fined by the city/HOA for tall grass, etc.
6. If you are just walking away from the home b/c you want to move out of state, they WILL NOT approve your short-sale. That is a choice.
7. Get a new Realtor...yours clearly is not familiar with the terms of a short-sale and you need someone WHO IS.
Do I still have to keep home insurance on a vacant home if I'm negotiating a short sale or can I cancel it?Remeber what Forrest Gump said? "S*it Happens"! How would you feel if you cancelled your insurance and the home was destroyed before you could complete the transaction? Do Not Cancel the Insurance.
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