Dwelling Insurance In The Redemption Period
In Michigan, the redemption period, after the sheriff sale, is 6 months. What happens to the insurance that was in place when the lender got the property back?
In Michigan, the redemption period, after the sheriff sale, is 6 months. What happens to the insurance that was in place when the lender got the property back?
It more than likely depends on the policy language within the contract itself. In other words, it may have provisions allowing the lender to continue coverage (assuming premiums are paid) for a specified time period. Why do you ask?
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Assuming you have the "insurable interest" (ownership rights, etc...), the biggest issue to insuring it will be the condition of the property/claims history. Once you do, you should cancel the "old" coverage...hope this helps....
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