Note: I actually wrote a long detailed post about this, but the Blog server ate it when I went to publish it.
Well, my wife gets a call yesterday from a lady who is handling the insurance on Offer #6. She tells my wife that the policy is void since it will not be an owner-occupied (OO) property. I call the lady on my lunch break, and she basically tells me the same thing. I then call the lady handling my loan to tell her the story. She claims that the paperwork they sent the insurance company specifically said it would not be an OO property. She said she'll straighten the mess out and call me with the details. It's nearing 5pm, and I still haven't heard anything, so I call the lady at the loan officer's place for an update. She says they are rewriting the policy, and it will more-than-likely increase my closing costs. Great. She also said it might impact the closing date, but she doubted it. She also says that the title company gave her a revised settlement statement, and it shows an increase of $20. Great. My reserves are already stretched to the hilt, so any big increase will have me looking at taking out a loan. Great.
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3 comments:
Hi steve, just a note of encouragement. you are not alone. this latest market correction has me re evaluating my strategy, but not my vision. May you get some positive news/phone calls soon. I overextended myself. I had to sell off some positions @ a loss. That really bites. my lesson? never again will I not leave room for flexibility. I think I read from Trish. Going forward, I will Adjust my Debt/equity Ratio. Good luck closing and Selling ASAP so you can get a breather.
Hey, don't sweat it, Steve. I've had that happen before, too. I think the insurance agent's just trying to give you a hard time. For me, actually, insurance is cheaper as the landlord. We get two things on our properties--dwelling insurance (which does not include personal property inside the house) and rent-loss insurance. Of course, you won't need to insure your tenant's items--that's up to them. But, dwelling will insure you against fire or acts of God or vandalism, etc. However, if you're in a flood-proned area, you'll want to get additional flood insurance. Usually, dwelling only covers burst pipes. Rent-loss insurance covers you against lost rent in the case of severe damage to the property. That way, you don't have to go bankrupt while you wait for the insurance company to cough up the money needed for repairs during the worst case scenario.
richard - I looked into option trading at about the same time I started looking into REI. To be honest, I never devoted myself as much to option trading, and have all but forgotten what I did learn. Once I get going with REI, I'll definately go back and start learning option trading again, as it will provide yet another income stream. Perhaps after I get started with that, I'll look into other streams of income, like owning a business (note: my wife and I always thought about opening a storage or car wash business).
trisha - Very good info. I admit when it comes to details like insurance, I am quite naive. I guess that's why they always say to build a team around you, so you don't have to do and know everything yourself (at least, not in detail). I knew about fire dwelling policies, but not the rent-loss policy. Thanks again!
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