Owner Finance Buyer not keeping property insurable

2 Replies

I sold  a property about 3 years ago to a buyer owner finance. The buyer has not kept property in a condition that the insurance companies consider insurable so they canceled the coverage. We cannot even find an lender policy in it’s current condition. If it was a rental we would take care of the matter out of pocket.  

Anyone ever dealt with something like this?

Joel,

There may be a State market of last resort.  In CT they call it the FAIR plan.  Could be called Assigned Risk or Pool. 

There are Excess/Surplus lines companies that will write most properties.  The premiums are usually high and the coverage limited. 

If you are not dealing with an Independent Agent who writes both Residential & Commercial clients you should look around for other quotes.

@Joel S., if the property is not insured and that is a condition of the loan, you maya have grounds for foreclosure. I’m sure that’s not what you want to do, but this may be something that needs to be felt with sooner rather than later.

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