Preferred strategy for Insuring second lien notes

[Andrew Smith]

Hello,

I know there are some older posts about insuring lender's interests in 2nd lien notes.  I wanted to get the conversation going with a few ideas we've heard.  The first option, which has failed for months, is having the servicer email the borrower for a copy of current HOI info.  Here are some other ideas.

1.  Don't worry about it.  If the house burns down they will rebuild and your note will still be collateralized by a house and land.

2.  Find the servicer for the 1st lien without asking the borrower and go directly to them asking for the info (but I don't know how to find the servicer from the title report).

3.  JB Lloyd has a policy for 2nds and it's not that much money.  However, we're possibly paying for duplicate coverage.

Thanks!