Insurance After Trustee Foreclosure Sale??

Comments(9)

• 
  norrist6th May, 2004

  If there has been "consideration" made, such as a downpayment, you can get insurance coverage, maybe not with your agent, though.
  
  (When you buy a car and drive it off the lot, it isn't yet "in your name", but you sure as heck better insure it, huh)?!
  
  Once you have made such consdieration, you have an "insurable interest". You may want to check with the municipality/trustee for their opinion as well (good luck, though).
  
  Hope this helps,
  
  Tim

• 
  bergvw7th May, 2004

  I talked with the trustee/county treasurer and he said I will have to talk to the insurance companies. He said this may be another reason why foreclosures tend to be a risky investment.
  
  Any help with insurance company names that will insure during the redemption period will be much appreciated.
  
  Thanks

• 
  norrist7th May, 2004

  Find an Agent familiar with REI at a local group. He or she should know how to help. Good luck, Tim

• 
  TNTRASH7th May, 2004

  I use Farm bureau.
  You give him the address he will look at the property and take a picture he can issue a BINDER to cover the insurance on the date you buy it. you will only get a FIRE policy or LANDLORD policy until you move in. Also FARMER"S INSURANCE can do this

• 
  adambeal18th May, 2004

  I also have just come across this situation for the first time. I asked my Allstate agent about covering me. He said he can't until we actually possess it, but that Foremost Insurance will do a binder on the property until the end of the redemption period.

• 
  norrist8th May, 2004

  It's not as much about the company as it is the agent actually knowing how to do it...

• 
  bergvw19th May, 2004

  Thanks for replies.
  
  I've talked to several more agents and all I get is "no" for an answer. They say it has to be in my name first.
  
  Any other help?
  
  Thanks

• 
  loon19th May, 2004

  You may be approaching this wrong. It is in your name already (the Sheriff's Certificate is, anyway) and you certainly have a insurable interest. You need not explain all the details of its acquisition to your agent, though you might want to say something like, "I bought it as an investment, and I'm in the process of moving the tenants out, since I want to get in and remodel it for resale."
  
  If pressed for details, tell the agent, "well, honestly, the tenants have been uncooperative and I may have to evict them. That's part of the reason why I got a good deal on the property." Ask for understanding til you can get it resolved. If the agent wants to inspect it, kindly offer any photos you have, save em the trip. This may not work, though, then it all comes out.
  
  Since the old owners are still there, that complicates matters, and I could see the possible problem if they had, say, a fire or you had other reason for a claim. Have you offered them Uhaul $$ to get out, and give you a quit claim deed? That would get them out of the picture.
  
  Otherwise, you might call an agent (your personal one if you don't think you've burned that bridge) and say, "I just bought a house, and need coverage." There might be issues with title (do agents really check such things?) but by the time it comes up, you may have full, demonstrable title.
  
  I've only bought already-vacant properties at Sheriff's sale, so the 'closing' consists of 1) recording the Sheriff's Certificate, and 2) getting/recording the QCD from prev. owners, if any, or waiting for their redemption rights to expire to get them off the title. Any title flaws--I do some basic title research first, and avoid any problematic ones--may require a quiet title action with an attorney, which isn't a huge process. Then, title insurance is possible. Good luck.

• 
  norrist19th May, 2004

  loon is correct, especially on the insurable interest explanation. You need to find an Agent that understands the concept...