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Foreclosures

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Dewayne E.
  • New York City, NY
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foreclosure property insurance prior to getting the deed

Dewayne E.
  • New York City, NY
Posted Mar 6 2017, 20:38

Hello BP. I was the winning bidder on a courthouse steps foreclosure auction in NJ. Before I can get the deed of sale, I need to wait for motions to go through the court system and approve the sale. A formality, I'm told, but it could take weeks or months. In the meantime, court documents for this case state that the prior owner shall "take all reasonable steps" to maintain fire/casualty insurance on the property at their own expense. The property is vacant.

SO. I would like to protect myself in case the prior owner is not maintaining insurance (they are BK after all) between now and when I get the deed, in the event lighting strikes, there's a fire, a tree falls on the house etc. But insurance co's I speak to say they may deny a claim if something happens and I'm not the deedholder. 

Has anyone dealt with this type of situation? If so, how did you manage through this?

Thanks in advance...