by Guest » Fri Jun 10, 2011 08:23 pm
I sold a house owner financing. The buyers made one payment and then let the policy expire. The insurance company will not let me insure it even though I am the lien holder because I do not own it. The new buyers have to sign a new application which I suspect they will refuse to do even if I pay it. This puts me 85K at risk. Help. How can I as a lien-holder protect my interest.
Posted: Fri Jun 10, 2011 11:52 pm Post Subject:
As there are hundreds of thousands of lien holders which would be in the same boat I'd think that there is a policy that a lien holder can get to address their exposure. You need to speak to a good agent about this.
The finance contract should address the home owners lack of insurance. That is, your contract should state that you have a right to force place insurance on the dwelling and pass on this cost to them. If they don't pay you really should look to foreclose on the home. If they are not going to pay for insurance then I will bet any amount of money that they will stop paying on the home.
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