Forced placed insurance

[Chris Seveney]

Reminder to people out there, if you have your servicer handle the forced placed insurance - remember after a foreclosure or deed in lieu where you get the property back the property is no longer insured.

Recently had a house burn down that we recently foreclosed on and thankfully I carry insurance thru my agent and not servicer but reminded me of days when I went thru servicer

This should be added to a REO checklist item for yourself

[Andy Mirza]

@Chad U. Sounds like it might take a lawsuit to get that insurance company to pay up. That situation doesn't sound right to me but some insurance companies seem to be good at getting out of ways to pay out.

@Chris Seveney The way I remembered it being explained to me, if you use Ross Diversified, FPI will cover a subsequent REO except for liability insurance. That was a relief to know that there wasn't a gap in coverage. Also, the moment you sign up as a lender in their monitoring program, any new loan that gets transferred to FCI gets covered by FPI if needed. (Please correct me if I'm wrong).

Regardless of what you do for insurance, you should set up your systems to alert you to get the proper insurance and to renew when necessary.

Was having the REO burn down a good thing or a bad thing, just curious?