question for the experts, i have a home i bought in foreclosure, i do not own the home yet because i have not closed on the loan…the former owner is still in the property…someone suggested that i immediatly get an insurance binder since the former owner is still there, and maybe she might want to wreck the place before she gets evicted or leaves… my insurance guy said, no i don’t need it, because, since the house is actually owned by the bank ( countrywide ) i believe, and they have insurance on " their " property… it was the attorney representing the bank who was at the auction that suggested i get an insurance binder…seem’s like a little grey area here to me…anyone with any suggestions or similar experiences? … much thanks
there is always a chance the home will be wrecked by the homeowner before they leave. I would get my own insurance because the lender usually will not use their insurance to cover damage if there is a sale waiting to close, but it depends on the lender. If the attorney suggested you get a binder you should think he has inside info into whether the lender will cover damage by using their insurance.
The last property I looked at in this situation was a good example of why you need your own insurance, The howeowner left the water running in the property after they moved. No one knows how long it was running, but when I can by to get a 2nd look at the property 2 weeks after I spoke with the lender the water was still running and the homeowners were gone.
good luck,
Tony
thanks for the info tony…