And you can remind them of that and that most likely the insurance would deny the claim because the wrong party purchased it.

@Denis Woosley @Meghan RahillConventional owner occupied multis….2 units 15% down3-4 units 25% down

I've ran into the issue of 2 major companies denying coverage due to the business owner managing properties that they own.

I'm nervous one will deny it.

They won't cover anything pre-existing, so if its already leaking, they will deny the coverage. 

If they do deny liability I would first review the contract for sale and purchase and the deed and see if it excludes outstanding utility bills and code enforcement liens from liability and shifted the onus for confirming their status to you the Buyer. 

Don't deny them because of family status.

When we bought our second home in Houston (2 blocks from the first house) the VA denied us due to its proximity to the first house.

We asked if we could switch title companies to one that offered a remote online notary (RON) but we were denied as the wholesaler had a contract with the title company that didn't offer that service.  

Failure to disclose/lying on a mortgage application will quickly get you denied.