Posted by GL(ON) on July 01, 2002 at 18:11:04:
Insurance companies don’t like to insure junkers. I doubt you could insure a place like you describe.
But if there is no mortgage you don’t have to have it.
Sometimes they will give you a little slack if it isn’t too bad, they know you are going to live in it and fix it up right away. This depends on your agent’s experience with you and how he goes to bat for you.
You never know until you try.
owner financing junker - Posted by Howard
Posted by Howard on July 01, 2002 at 16:08:59:
I have a junker (have rehabbed before) that i was thinking about owner financing. Property has no loan on it. Will the insurance companies be tough on properties that have things like… needs new entry door, roof leaking, window broken, part of floor needs replaced, etc. About 10k of work. I’m talking about homeowners insurance for my buyer when i owner finance it. Any suggestions? I have a full plate right now and don’t really want to fix it, but couldn’t pass it up for as cheap as i got it.
Re: owner financing junker - Posted by Joe
Posted by Joe on July 01, 2002 at 18:17:11:
If you owner finance it, you should get a landlord’s policy for the structure and liability to insure your interest, and have the buyer get renter’s (contents) insurance for his personal property.
My suggestion is to get a landlord’s policy from an established independent insurance agency. They represent many insurers and can get terrific rates. I doubt the question of the condition of the property even comes-up.