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Updated almost 9 years ago on . Most recent reply

User Stats

824
Posts
281
Votes
Kenneth LaVoie
  • Rental Property Investor
  • Winslow, ME
281
Votes |
824
Posts

Insuring a home as mortgage holder when buyer fails to insure

Kenneth LaVoie
  • Rental Property Investor
  • Winslow, ME
Posted

I sold a house to someone. I held the mortgage. They reneged. They failed to keep it insured. I am foreclosing but the house sits uninsured. Banks get insurance in these instances as easy as you and I stop and get a gallon of ************* milk, but even Lloyd's of London won't insure this house. It needs some work. Roof is not great, boiler is too old (steam). 

Does anyone know anyone that deals in this sort of thing? I know this experience has completely eliminated my use of seller financing (to sell) under any circumstance or term. It just doesn't compute risk-wise. 

Thanks for any bumps in the right direction. 

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