Posted by d.henderson on May 09, 2000 at 08:16:31:
Phil!
I can always count on you for words of wisdom. Thanks. They are the same ones, but they didn’t say anything about the roof since the very first. Just got the big insurance check and I was just wondering. I took a firm stance as you suggested and they are finally getting it
Thanks again my friend,
Dee-Texas
Insurance question - Posted by d.henderson
Posted by d.henderson on May 08, 2000 at 20:04:39:
I just sold a house carrying the loan. Got the title company to do the whole thing. Buyer was suppose to get insurance and show proof. A hail storm comes and does some damage to the house before the buyer has insurance. The buyers insurance man says that there is some damamge and to check with us. Ok, my man goes out and prorates the roof and I come out with a whooping big check of $675.00.
No way will this check cover a whole roof maybe a few patches.
Question:
I’ve never dealt with this before, what do you do? These are the same people that can’t understand why I won’t fix their faucets. DUH
I want to be fair.
Anyone dealt with this before?
Thanks to all.
always learning,
Dee-Texas
Re: Insurance question - Posted by JPiper
Posted by JPiper on May 09, 2000 at 09:06:48:
“Got the title company to do the whole thing. Buyer was suppose to get insurance and show proof.”
So why was the deal closed if the Buyer did not have an effective insurance policy in place? Was this requirement in your contract? Did the title company ignore a condition of closing? Did you ignore this condition? Requiring an insurance policy on the date of closing is ROUTINE. Why wasn’t this condition followed.
Either way, I wouldn’t want my collateral sitting there with a bad roof. Nor would I want the Buyer overlooking his own responsibility. Depending on the other details I would wonder about the title company’s responsibility as well.
I would use the funds to repair the roof…but require payment by the Buyer. If they couldn’t afford the full amount…I’d create another note with a shorter payoff to cover the roof. Try to get some additional collateral for this note.
Remember though, this deal should not have been closed without a policy in effect. Yes…they Buyer “should” have done it. BUT, this deal should not have been closed without it. The Buyer is not the only person who screwed up here. Something to think about.
JPiper
Re: Insurance question - Posted by phil fernandez
Posted by phil fernandez on May 09, 2000 at 04:56:23:
Hi Dee,
These must be the same people you were talking about a few weeks ago. They own the house, but want you to treat them as if they are living in a hotel.
If there is something in writing stating that the buyers must have insurance on the house as of the passing of title, then to me it is clear cut. The buyers goofed. Sounds like these buyers are one, irresponsible and two seeing how far they can push you.
My guess is that their behavior will continue like this. Again what part of the statement " I no longer own the house, I sold it to you. You now own the house" do they not get ???
I wouldn’t do the repairs because you do not own this house. Of course the house is still collateral for the mortgage that you are holding.