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Updated over 3 years ago on . Most recent reply

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Diana Bonacasa
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Note Investing question

Diana Bonacasa
Posted

I purchased my first note and I get a phone call from the asset manager telling me that the house burned down. Thank God everybody is ok. I felt really bad for the borrower because he never had insurance on the property. As soon as I purchased the note I made sure I got insurance on my investment. I am in the process of getting my check from the insurance. I am not sure if the insurance will collect the amount of the claim under the subrogation process. I want to do the right thing as a lender and investor. I dont want to face any potential liability. I understand the borrower is on the Deed of the house. My question is, if this borrower abandons the property and files bankruptcy, would I be responsible for the property taxes?

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