If you’re facing foreclosure, burning down your house is not the solution, says the Insurance Information Network of California.
Executive director Candysse Miller said it’s best to contact your mortgage lender as soon as possible if you fear losing your home, and noted that arson is surely not the road to financial recovery.
That’s good news, considering the rising number of delinquencies and foreclosure filings nationwide.
The group noted that the state of California recorded 481,392 notices of default in 2007, but only 14 arsons potentially related to foreclosure were reported by the California Dept. of Insurance, though it’s unclear if that number went up or down from last year.
Additionally, the IINC warned that insurance fraud or arson will result in jail time, and that insurance fraud alone could lead to five years in jail and penalties of up to $50,000.
Frank Scafidi, director of public affairs with the National Insurance Crime Bureau, said those who burn down their home to avoid foreclosure will do time, and once they’re out, they’ll still have an outstanding mortgages.
Sounds like handing the keys back to the mortgage lender may be more advisable if you’re in dire straits.
(photo: beigephotos)
