Updated over 2 years ago on .
Most recent reply
presented by
Force Placed Insurance on IRA LLC Asset
My IRA LLC is the lender on a property (MH and land) in TX and has been for several years. Over the last year or so the borrower has been violating her deed of trust by not responding to the insurance renewals and not providing insurance information to the escrow company. She is current on her payments and has tons of money in the escrow account. I am getting ready to force place insurance.
The insurance broker says insurance companies are looking for any reason to not write insurance. They indicate that if they put my name (I am the signer for the LLC) and her name on the policy and put my LLC as the mortgagee, there are more companies that they can draw from. In my mind, this is like putting the utilities in my name for properties that my LLC takes back.
Does this violate any SDIRA rules as I don't want to forfeit my IRA?