Protecting a tax lien investment from damage
got a question. lets say you purchase a tax lien, and before the property is redeemed or you acquire it thru quiet title, what happens if the house is burned down or damaged by the current owner or someone else?? should or can you buy insurance on the house to protect your investment??
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@Cortney Jones, it is sometimes difficult to find insurance in Alabama because you have possession rights but not title. That creates "insurable interest" issues. Be sure to disclose to your insurance agent that you have a tax lien. If the property contains a residential structure, or if the property is located within an urban renewal or urban redevelopment district, then redemption costs will include reimbursement for insurance premiums plus 12% per year interest.