But it's still the seller's responsibility to fix it, which may mean they will have to file a claim against the HOA to get resources to fix it - and certify it was done properly.I must also note that what I've said was based on my situation up north, where I knew the CC&Rs pretty thoroughly.

He set me up with an automated listing service that I can customize with keywords to find undervalued and distressed homes in my market.

@Tiffani Crenshaw, You can ask the former tax deed owner to quitclaim to you, but if you want to get title insurance or borrow money, or know for sure nobody can redeem it away from you or claim the tax sale was void for some reason, you will need a quiet title order.

I'd be happy to talk through your specific scenario to give you an idea of the different ways you can structure your coverage, as well as discuss any potential claim questions you may have.

Require them to list you as a "loss payee" on the insurance policy.That will make sure you get paid if there is a claim and you get notified if they are late on paying their insurance bill.The other option is that you escrow it and add it to the monthly payment and then you pay both these from the proceeds.Make sure you specify that these may go up and they owe the difference when they do go up.

The risk is on the tenant buyer end (you doing a lease option with your tenant and prospective buyer):If I have to evict the tenant, my attorney said that because they have an option agreement, there is a claim of ownership and the case can't be heard at the district justice court.

Also, there hasn't been any claim, so the mortgage company is not exposed to any risk...i don't understand this.

Problem is I saw the original deal from Criagslist and the poster claims to be a wholesaler from the area. 

You might have to wait for a long time but eventually the bubble will burst and FINALLY you can claim that you saw it coming all along.

And when I had the water damage and had to submit a claim, USAA didn’t inquire either.