Insurance Loss?
I have a question here regarding insurance loss and tax liens:
I was reading the paper this morning and saw that a house had burnt down and the name and address caught my attention. The folks were on the del. tax list and a lien was purchased against their property this year. It wasn't by me but I was just wandering what happens at this point if there are liens against the property.
I'm not at all versed when it comes to insurance but common sense tells me that all liens are paid by the insurance company and the difference is given to the property owners.(seems like a good potential for ins. fraud exists in these situations.)
Is that accurate??
Has anyone had to deal with this?
My guess.
When there is a tax lien, often there is no loan.
When the owners are not paying the taxes, they are often not paying insurance.
My guess--no loan, no insurance.
The tax lien buyer may just have a gotten a lesson in how to lose money with tax lien investing.
Good Investing***************Ron Starr*************