I’m negotiating w/ a mortgage company to get on their list of preferred HI’s and they require their HI’s to be bonded. There has to be an easy way. I figured I’d start here since if they require it then there are HI’s out here w/ it.
Also anybody sign a wash agreement with a mortgage co.
The only bond that would apply to HI’s is a dishonesty bond. It protects the property owner against theft. I recently was involved with a transaction that required me to be bonded and since my wife sell’s commercial line of insurance, I found this would be the only bond that would apply and cost $100.00 for one year of coverage in my state. I have to be honest, I have never heard of a wash agreement.
What the hell is a wash agreement?
There are also surety bonds, which most of the time apply to contractors, however in our state they can be required by the state. As HI’s, we are required to be licensed by the state as Structural Pest Inspectors. The agency that controls that has certain insurance requirements, if one does not wish to have E&O (coverages and types mandated by the state) a $25,000 surety bond can be substituted.
Wash Agreement: I’m not sure if thats the proper term, but in essence, if payment is deferred to closing and the loan doesn’t go thru you don’t get paid. Now granted, we HI’s normally get paid on site; however, dealing with this mortgage co. may require some payments to be delayed until closing. I have thought of ways around this.
I was just wondering if anyone out there was ever required to sign one?