Posted by Kristine-CA on June 30, 2004 at 15:25:31:
n/t
Can I force place insurance when I’m the lender? - Posted by Kristine-CA
Posted by Kristine-CA on June 30, 2004 at 12:57:06:
Greetings all. I’m the holder of a note secured by a deed of trust. The terms of the deed of trust state that the owners must buy insurance and provide proof of insurance. The property has been abandonded for several years and there is no insurance. Can I buy insurance that covers my interest as the lender? Can I include the cost of the insurance in the foreclosure costs.
What do I tell the insurance company so they that they insure my interest?
Unfortunately, the trustors emerged right after I bought the note–after 6 years of not paying on the note. And there are squatters on the property. I want to make sure that the property is insured against damage and/or fire.
Any suggestions appreciated. Sincerely, Kristine
Re: Force placed insurance - Posted by anon
Posted by anon on June 30, 2004 at 14:15:43:
Re: Can I force place insurance - Posted by Bryan (NC)
Posted by Bryan (NC) on June 30, 2004 at 13:14:32:
The only encounter I’ve had with a situation like this is with a potential short sale from Household Mort. The owners didn’t pay the insurance so Household opened a policy on the property. The payoff amount on the property includes $3600 in “unpaid other fees” which I’m assuming includes the insurance cost. I haven’t seen the original mortgage docs yet so I don’t know if this was provided for in them or if it is a right of note-holders. Also, I’m not positive that the payoff includes the cost of insurance. Anyway, I think definately you can place insurance on the house for yourself, but I’m not sure if you can be compensated for it.