I know that mortgage lenders generally require homeowners purchase home insurance, with a loss clause payable to the lender.
But what if it's a family loan, and the borrower is not cooperative? The case is a recorded 2nd mortgage loan to a family member. The borrower is not performing on the loan, and not providing documentation about required insurance. The borrower has made threats of committing arson. How can the lending family member protect their interests, short of foreclosure?
The holder of the 1st is protected, and periodically force places insurance for the amount of their loan. The family however, is not protected.
Is "lender placed insurance" possible for the 2nd mortgage, in such a situation? Is there a way to make such coverage something other than last resort and high cost? Is this even sold to individuals, not just corporations (See http://www.naic.org/cipr_topics/topic_lender_placed_insurance.htm )?