Rosemead, CA · Member since 2014 · 35 posts · 7 votes
I know properties bought through bank-owned or REO usually require major renovation and fixing him. I wanted to see if anyone has bought a house that was bank owned or through REO and then seller financed it. If so, my question is, were you able to insure the property? I assume for seller financing you always want to get insurance since you are still on title but what if your property is in a pretty poor state. can it still be insured?
Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes
10y
We just did a seller finance for a home for $35K in S. Carolina and required the buyer to carry both hazard and liability insurance. We are not on title, we are the lender. Hope this helps.
Investor · Rock Hill, SC · Member since 2015 · 52 posts · 6 votes
10y
There are policies which can cover a property under rehab, and policies which can cover only the out-of-pocket dollar investment (including rehab cost dollars) on a property. The second type not intended to be a replacement policy, but only to insure your investment in the property. Long-short of it, I agree with Bob. When you are the bank, you should always require the borrower to obtain some type of policy to cover your investment, naming you or your business on the policy as beneficiary.
Rosemead, CA · Member since 2014 · 35 posts · 7 votes
10y
@Bob Maleckiif the buyer is late on your seller financing terms, can you still call the property back to your name? I'm looking at doing something similar in florida but I heard FL has long foreclosure laws so I'm not sure if its a good idea to put it under buyer's title.
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
10y
@ John
@John S. I think what you are referring to is a Land Contract. I know people that do these all the time but check with a FL attorney to make sure you know what the expected timeline is and if it changes based on the amount of equity the buyer has in the house.
@Bob Maleckiif the buyer is late on your seller financing terms, can you still call the property back to your name? I'm looking at doing something similar in florida but I heard FL has long foreclosure laws so I'm not sure if its a good idea to put it under buyer's title.
It would essentially be a foreclosure since I granted a Mortgage with promissory note. You could do a land contract as mentioned, but I did not since I plan to sell the note after it is seasoned.