Force Placed Insurance- Replacing W/o Triggering DOS
Hello All,
I just did a sub to on a property where the previous owner let his insurance policy lapse. So the lender put in place force placed insurance which came up as part of his total arrearages at title. The FPI is about 1600.00!! Ouch! I want to replace it with my own policy and get that money back since I paid for it at escrow. How do I do that without, again, running the risk of triggering the DOS? Also do I need to name the origional owner on the policy along with myself? And last but not least I have a sinking suspision I should have had my insurance all ready in place when I went to closing so it could have been taken care of then? Is that how everybody else does it? 
Any insight you guys have on this issue will be greatley appreciated -Sarah
I know your post is a few wekks old, and you may have already seen this:
http://www.thecreativeinvestor.com/Article472.html&mode=&order=0&thold=0
If so, I hoped it answered your question. If not, PM me and I'll try to help.
I know your post is a few weeks old, and you may have already seen this:
http://www.thecreativeinvestor.com/Article472.html&mode=&order=0&thold=0
If so, I hoped it answered your question. If not, PM me and I'll try to help.
Dear Madam,
The first thing one does on such title ventures is get your insurance ready to go cause the lenders love to soak it to you with an insurance premium that would frost the freckles of a pigmy goat.
My suggestion would be to get your new replacement policy and in it name all the players and then as time goes by remove the non player names one by one. The theory of the Big Wave, it washes and exposes everything. while the series of small waves do nothing.
Enjoy the units. Lucius
I think the 1600 is the amount already used. That means you may not be able to get that back. If the cost was 1600 for 4 months then their ins is costing you about $14 per day. I am guessing you can get your own for a lot less. So, get that done. If you are going to try to get the 1600 back I would try to angle by having your insurance guy provide proof that it was insured during the time in question. Since it was not, he is probably not going to do that. It is probably illegal to do that, as it is also illegal to double charge insurance...which is why they would have to give you the 1600 back.
If you do something like that...do it on Friday...ask to be forgiven on Sunday.
PS if 1600 is the annual premium, you will get the unused balance back.
[addsig]