Insurance Question as note holder

[James LaRocque]

Hi All,

I received an email from my servicer the other day saying that my borrower would like to file an insurance claim for a leaky roof. This brought many questions to mind real quick. In further discussion with my servicer, the borrower appears to be under the impression that I had placed insurance on the property, which I never have.

Looking through my records from the purchase/due diligence I have a copy of a "Homeowners Policy" in the borrower's name and address. I can also previous lender/servicer was collecting insurance payment through escrow, would this be indicative of placed insurance? I've never used placed insurance so not sure.  I don't however, have anything actually saying that the previous lender actually took out the policy.

I feel like this might be a big deal, but I'm a newbie so please go easy on me.

Thanks.

James

[Jamie Bateman]

Call Madison and ask for more detail. You can also try calling the insurance company you saw in the file to see if that policy is still active (and inform them that you need to be added to it).  

Madison does offer FPI (from a third-party vendor) but you would have agreed to that. It could be just that Madison was letting you know, and the borrower is confused (that part is quite likely). 

This is something you'll want to confirm and track for your next note purchase.