All Forum Posts by: Rogelio M.

@Jeff S. 

Jeff, thank you kindly for the information.  Certainly, one, as a lender holds most sway PRIOR to issuing a loan, where one can impose/require all of these safeguards.  I am having trouble with my borrower, and this experience is serving an in depth master class learning experience  ;-)  I may have to move forward with a foreclosure.

Within the context of what you have outlined, what then is the difference between Mortgagee/Loss Payee vs. Additional Insured?  What protections would I have being named as Additional Insured, that I would NOT have as Mortgagee/Loss Payee?

I have also heard that one, as a Lender, can obtain a SEPARATE insurance policy naming only the Lender as the insured.  The Borrower would obtain a separate policy.  That way, if there is a loss, the insurance company covering the Lender will disburse the funds only in the name of the lender.  Is this a viable option?  If not, what about this option is not viable? 

I noted your comment regarding title policies.  I did obtain coverage under Lender's Title, but then, I agree with you that is a whole different topic.

Thank you Jeff!

Rogelio.

@Mike Grudzien 

Mike I appreciate your '2 cents'!  I have mixed information on this.  Checking with a Title Company and the insurance agent are good ideas!  Rogelio.

Ref: Lender "Mortgagee Clause" vs. "Additional Insured" on Insurance Policy to Property as Collateral

How specifically should a private lender be mentioned on the owner's insurance policy to a property used as collateral to a loan. I want to assure that I, as the Lender, get paid FIRST if there is an insurance payout. I also want to avoid the insurance company issuing out a payment in both the names of the Lender and property owner .... which could lead to a dispute.

For context, I lent money privately to another investor, who put up their non-homestead property as collateral. At closing a Note was issued and a Mortgage/Deed of Trust were issued showing the Borrower (Investor's) indebtedness to me, with a Mortgage/Deed of Trust showing my rights as Lender over the Borrower's property.
I have received mixed recommendations on this topic and am looking for guidance that is consistent.

Specifically, I lent money and had the investor/borrower/property owner place me as "Mortgagee" on their property's insurance policy. My assumption was that if, let's say, the structure burnt down, the property's insurance would then pay me out FIRST as the lender and NOT issue a check in both the Lender's and Property Owner's name. Am I correct in this assumption? If not, how do I avoid this?

Other advice I received was that I should have also placed myself as "Additional Insured" on the Borrower's insurance policy, in addition to the Mortgagee clause. What role does being named "Additional Insured" play within the context of a Lender?

What is the optimal way to proceed?!

Any advice would be welcome!  Thank you all kindly!

Ref: Lender "Mortgagee Clause" vs. "Additional Insured" on Insurance Policy to Property as Collateral

How specifically should a private lender be mentioned on the owner's insurance policy to a property used as collateral to a loan. I want to assure that I, as the Lender, get paid FIRST if there is an insurance payout. I also want to avoid the insurance company issuing out a payment in both the names of the Lender and property owner .... which could lead to a dispute.

For context, I lent money privately to another investor, who put up their non-homestead property as collateral. At closing a Note was issued and a Mortgage/Deed of Trust were issued showing the Borrower (Investor's) indebtedness to me, with a Mortgage/Deed of Trust showing my rights as Lender over the Borrower's property.
I have received mixed recommendations on this topic and am looking for guidance that is consistent.

Specifically, I lent money and had the investor/borrower/property owner place me as "Mortgagee" on their property's insurance policy. My assumption was that if, let's say, the structure burnt down, the property's insurance would then pay me out FIRST as the lender and NOT issue a check in both the Lender's and Property Owner's name. Am I correct in this assumption? If not, how do I avoid this?

Other advice I received was that I should have also placed myself as "Additional Insured" on the Borrower's insurance policy, in addition to the Mortgagee clause. What role does being named "Additional Insured" play within the context of a Lender?

What is the optimal way to proceed?!

Any advice would be welcome!  Thank you all kindly!

Ref:  Active Energy Account?, with CPS Energy in San Antonio, Texas

Does anyone know how to find out from CPS Energy if there is an active energy bill account for a particular property?

Thank you kindly.

Am in agreement with @Theresa Harris ... rents should be raised, if not to market rate, to at least cover the mortgage and real estate taxes and HOA expenses. By covering one's out of pocket expenses, one can continue helping the family member, if one wishes to continue doing so.

Greenfield looks like the way to go on in expensive market .... if one can find the land.  The metro area is squeezed between the Everglades on the West and the coast on the East ...

Midsouth Home Buyers BBB -

https://www.bbb.org/us/tn/memphis/profile/real-estate-servic...