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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Welcome to the real world of foreclosures Posted by Tom on May 08, 2008 at 9:37 AM In Reply to: Re: Welcome to the real world of foreclosures posted by J on May 07, 2008 at 1:36 PM If this were a normal buy-sell of real estate this would be strictly a civil matter & suspect that's how the police and insurance company would tend to look at it. If you had builder's risk insurance you might have a better case, but it doesn't sound like you do. I doubt if SC AAA writes builder's risk. Was the house insured as occupied or unoccupied? This is equalivent to letting your cousins or any other guests stay at your vacation cabin and taking away some "souveniers." A police report (if they write one) would read that there are things missing, no breaking and entering, and the owner estimated time of disappearance. These are the problems and risks that the lender or successful bidder assume with foreclosures. You can't prove the items were taken after the trustee sale & the distinction may not be germaine to the insurance company. Filing a claim is debateable. Depends upon if you want to get the reputation for filing a questionable claim. The first thought in the claim adjuster's mind is insurance fraud. They may take the positon not to pay and let you sue them. Insurance companies do keep a national data bank of fraudulent and other claims. For sure what's reported is subjective to the insurance companies viewpoint, but having your name in the bank could cause unintended consequences down the road. It's like a credit report. Sure you can refute it, but it may never be stricken from the record. So why chance it. I'd call an independent claims adjuster or three and research this a bit more before filing a claim. S/he could better estimate your chances for a successful claim (and may try to sell you their services). You be the judge. $8000 is not a small piece of change, but by your own admission you can got a deal. I have empathy for you, but if you're a true active investor your best use of your time may be spending the time prospecting for your next purchase. Seek a good accountant to see if you can write the loss off on your entity's taxes w/o reducing your cost basis of the house. See if you can get that past the IRS in an audit. Should you file a claim, let us know the outcome. It should be interesting. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : If this were a normal buy-sell of real estate this would be strictly a civil matter & suspect that's how the police and insurance company would tend to look at it. If you had builder's risk insurance you might have a better case, but it doesn't sound like you do. I doubt if SC AAA writes builder's risk. Was the house insured as occupied or unoccupied? This is equalivent to letting your cousins or any other guests stay at your vacation cabin and taking away some "souveniers." A police report (if they write one) would read that there are things missing, no breaking and entering, and the owner estimated time of disappearance. These are the problems and risks that the lender or successful bidder assume with foreclosures. You can't prove the items were taken after the trustee sale & the distinction may not be germaine to the insurance company. : Filing a claim is debateable. Depends upon if you want to get the reputation for filing a questionable claim. The first thought in the claim adjuster's mind is insurance fraud. They may take the positon not to pay and let you sue them. Insurance companies do keep a national data bank of fraudulent and other claims. For sure what's reported is subjective to the insurance companies viewpoint, but having your name in the bank could cause unintended consequences down the road. It's like a credit report. Sure you can refute it, but it may never be stricken from the record. So why chance it. I'd call an independent claims adjuster or three and research this a bit more before filing a claim. S/he could better estimate your chances for a successful claim (and may try to sell you their services). You be the judge. $8000 is not a small piece of change, but by your own admission you can got a deal. I have empathy for you, but if you're a true active investor your best use of your time may be spending the time prospecting for your next purchase. : Seek a good accountant to see if you can write the loss off on your entity's taxes w/o reducing your cost basis of the house. See if you can get that past the IRS in an audit. : Should you file a claim, let us know the outcome. It should be interesting. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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