Insuring wrap mortgages

Message

Author

Posted: Mon Apr 05, 2010 9:43 am Post subject: Insuring wrap mortgages

I'd like to know the legal concerns behind seller-financing done by property owners. How about insuring such properties? What could be the challenges? _________________ Register Now to have your Insurance queries solved.

Bobbymoore

Guest

Posted: Tue Apr 06, 2010 8:56 am Post subject:

Well, there could be a lot of reasons why a property owner might opt for seller-financing. It could be a good option for him whenever he's going through a financial crunch and is heading towards foreclosure.

steven

Senior member

Joined: 02 Feb 2006
Posts: 1553

215.66 Dollars($)

Posted: Wed Apr 07, 2010 9:56 am Post subject:

The concept of an owner seller-financing is quite popular with many sellers. On the other hand, the property that's purchased is often not covered. This is where it invites legal challenges.

roddick

Senior member

Joined: 05 Oct 2005
Posts: 962

143.16 Dollars($)

Posted: Fri Apr 09, 2010 12:28 pm Post subject:

There is one primary legal problem associated with covering a seller-financed property. The mortgage and the initial promissory loan are an agreement between an initial borrower and the lender. The initial mortgagee believes that the initial borrower is there on the title and that both are maintaining and occupying the concerned property. _________________ Insuranceguy.ampminsure.org

Juanita

Moderator

Joined: 04 May 2007
Posts: 735

Location: Idaho
137.01 Dollars($)

Posted: Sat Apr 10, 2010 7:31 am Post subject:

The property seller has to cancel his existing HO policy as he's no more the titled owner. He's also not the 'owner occupying' the property anymore. _________________ Register Now to have your Insurance queries solved.