Insurance on Short Sales

I have asked several people but cant get a definitive answer. Maybe someone here can help?

 

If your client goes delinquent on their mortgage and insurance, is the lender covered if something were to happen to the property, I guess I mean does the lender continue to pay for a policy?  

What if the case is a bankrupcy and the collotalized property has been moved over to a trustee?  Has anyone had any experience with this or would you be able to point me in the right direction?

 

Thanks in advance.

 

 

-

Views: 40

▶ Reply to This

Replies to This Discussion

Permalink Reply by Jim Schneider on January 13, 2011 at 4:43am

The mortgage usually has an option where the mortgagee can force place insurance, which means very expensive home owners' insurance that the owner has no ability to refuse or choose. The cost of this is added to the mortgagor's debt. I don't think bankrupcy or collaterization would change this.

Here's a short explanation:

e-HOW definition of Force Placed Insurance

Hope this Helps

Jim Schneider, Broker

Clear Point Realty

serving Chicago and nearby suburbs

630 981-7300

 

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************