@David Adams I could be mistaken, but I believe what you are referencing is a form of Tenant Liability Insurance.

I've heard of it, unless I'm mistaken it is nothing more than refinancing and maxing out a HELOC on properties as often as you possibly can.

If I'm not mistaken (at least in my experience) these homes usually have a "do not flip" provision in the closing agreement as well where you cannot sell the home OR ACQUIRE A LOAN AGAINST THE HOME (think hard money or 2nd mortgage for repairs/flips) for at least 90 days after the date the title is recorded with the County.

I could be mistaken but I believe Fannie imposes the 75% LTV requirement.

If I happen to be mistaken, trust me any screening they do is virtually worthless to a landlord.

I mistakenly did not generate a 1098 for the mortgage interest for our buyers (2009) on land contract.

I mistakenly estimated the insurance based off a 6 month premium rate rather than my 1 year term rate. this would change my insurance estimate above to roughly 1200 annually (i pay 1015 for 170000 of coverage).

I first became interested in investing in real estate at a young age, when a package belonging to the owner of my parent's house was mistakenly sent to us.

Unless you mistakenly seriously underpriced your house, take it.

Once that time-frame expires (90 days in CA if I’m not mistaken), then the lender forfeits by default their ability to call the note due to the take over and change in ownership, thus eliminating the risk for the note being called at a later date for this reason.