i have a homeowner that is wanting $0 and just to walk away. however for some reason he is making two insurance premium payments per month…raising his house pmt from $450 to $827 in 3 years.
the property is in a flood zone. does anyone have any input on why he would be making 2 pmts. the house has $72,000 left and the comps in the area for homes like this are $82,000 to $95,000.
thanks to all for your input.
:biggrin
olesoul953,
The only way to tell is to read the policies and see what they are for.
If the home is located in a flood zone, it is possible there is a policy for that thru the fed flood insurance program, which would be a seperate premium and policy from the fire and hazard/HO policy…
The lender most likely required flood insurance to fund the loan, they all do when a home is located in a flood zone.
HTH,
Jim FL
thank you for your help.
:biggrin
what are your plans for the house?
i am not sure, i may be willing to pass it on to an investor that is interested. the houses in the area that are basically the same average between $84,000 and $92,000. this lot is very large.
Whats the market rent for this house?
How much to make it rentable?
If you can get say $1200 or more monthly in rent, and the house is solid, with good solid infrastructure, and a sound market, (in other words, its not going to drop to $55k in value in a year), then it might make a good rental, or be able to be sold on a lease option for the full $95k, a few bucks upfront, and some monthly spread.
The flood zone is not a great thing, but, it’s insured apparently, so that’s covered…just make sure any occupants are required to get contents insurance (renters insurance). Flood insurance will cover damage to the property in the event of a flood, but won’t cover personal possessions, nor will the new non owner occupied dwelling policy you’ll need to get to replace the existing home owners policy…and chances are, it will be cheaper too.
Good luck with it,
Jim FL