November 26th, 2012 8:09 AM by Nathan Rufty
Whenever we hear about insurance, we always think about the money that we pay for so that we will be covered when we encounter several problems in the future. Home loan insurances are no different; people need it and consider it important because there may be some things that will happen in the future that will make use of the money paid for the loan.
Most of the time, when people purchase the house they want, they would mostly need to see it first so that they will know if it is the proper house for them. However, there are instances when they live too far away from the house that they are planning to purchase and they would simply rely on the information that the seller will disclose about the house. The buyer can always request the seller to send in more pictures of the house to give them an idea about the house and the possible damages that it has. The chances of a house being sold for a low price in mint condition may be highly unlikely especially in certain areas.
There are some problems that people experience all over and over again because of different reasons. When it comes to the houses that people purchase, there is always a chance that you know someone who has purchased a house that has been damaged so much over time that it is barely livable. However, if the buyer did not check the house beforehand, then it is his responsibility. There are some sellers that do not disclose the full extent of the damages and problems of the property.
While there are certain insurances that may be able to help pay off for the house problems, there are some people who demand the FHA to provide insurance for the damages of the bought property. This is the common mistake of people right now. They automatically assume that since FHA has several loan programs, those programs will also cover damages and other house problems.
While it is true that there are some countries that have laws that will protect people who are purchasing their homes from buying houses that are in bad condition and there are instances wherein FHA approved houses have been checked and can make people be more confident about their purchase. Still, FHA cannot be held liable for houses that are purchased without being checked. If you would read the disclaimer thoroughly, it is stated there that they cannot be held responsible for houses that fail to meet the buyer’s expectation after being purchased because it is still up to the borrower to decide whether the house is presentable and livable.