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Posted by Steve W (WA) on October 28, 2002 at 22:13:00:

Well, it sure didn;t take me long to get into a conundrum!

Doing the Lonnie thang since March - sold one $2K investment three months ago on a 0% note for $7200, after 500 down.

Good 'nuf, right?

I required insurance prior to move-in, as recommended . . . and I HIGHLY recommend it too!

Three payments to me of $225, and the initial premium paid for a year - $15K home / $15K contents.

Two weeks ago, with no one home (thank God!), an electric heater caused a fire. Everything totaled - interestingly enough, the structure seems ok, but the FD tore out the walls and ceiling.

Due to domestic issues with the buyers (let's just leave it at that - it is of no consequence - they paid on time!), many were suspicious of ARSON! but the FD investigator could find no evidence of that.

Well, I received the $15K check today, made out to their names and mine (corp) - I expect to do the disbursement tomorrow. Wish I could find ways to get more of that $$ than the $6500 they owe me!

They have to pay to dispose of . . . or sell . . . the home, and they have to pay $300 lot rent until the lot is empty. The park doesn't want them back due to recent problems - bummer - I have another MH in that park I could sell them for some of that cash!

So, this brings up a couple of questions:

1 - if it HAD been arson, I suspect that the insurance company would not pay them - duh - but what about the poor lienholder - me - as additional beneficiary? Without asking the claims adjuster directly - and I have asked other ins salesmen - they dunno. Would I get my balance? If not, how does one protect against this?

2 - They signed a 1 year lease. Without having violated that lease, could they not just buy another home in the park and keep paying rent? Even though the PM has told me he is glad their house burned down (well, not GLAD, but you know) - he wants them out. I figure that the worst he could do is require them to stick with the lease on the original space only - they could move a home there, but not sign a new lease for a home already in another space.
Whaddya think - doesn't this make sense? I am not going to offer them a home in the same park - no need to p.o. the PM - but if I didn't care about that, I could.

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Posted by Chuck-NY on October 29, 2002 at 14:18:37:

Someone correct me if I'm wrong but...

I think you need to tell your agent that besides being insured as the lien holder you also want:

"AND as additionally insured" added to the policy.
Check with your agent to see if this would help you or if it would apply to your business.

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Posted by John Merchant on November 01, 2002 at 09:50:33:

Any beneficiary of an insurance (fire, life, homeowners's, etc.)policy has a right to sue the company if it doesn't pay.

Never take insurance advice from an agent. They don't know beans about insurance law, coverage issues, claims strategies, etc.

Likewise don't take advice from a claims adjuster...those people work for the company and their job is to talk people OUT of collecting!

This is an area in which lots of private lawyers specialize, and these are the people to whom you should be talking if you need advice re insurance policy, obligations, rights, etc.

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Posted by Steve W (WA) on November 01, 2002 at 13:51:17:

Got the check - and there was a local branch of the issuing institution - I got them to cash the check as two cashiers checks - one to me for payoff, and the remainder ($8.5K) to the buyer.

Chapter closed - except there is one anecdotal crumb:

The following day, I got a call from a Money Tree - you know, one of those check cashing pirates - they wanted me to verify that this was a real cashier's check, prompted by my buyer, I guess. Well I verified, and she cashed the check for them. I asked what their percentage cut was . . .

Holey moley - she paid them $500 to cash a check that she could have gone to the bank for.

He||, I woulda done it for $400!

People are so funny.

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Posted by John Merchant on November 02, 2002 at 15:15:12:

Another side note (harmonic?): a couple of years back, when a partner and I were researching possible buying of "check cashing" company franchise, I learned that there is a HUGE percentage of the population who never open a bank account. These people are prayed upon by Check Cashing industry, which is largely owned by Banks! And as you've said, their check cashing fees are astronomical.