Since likely you have a due on sales clause in your contract, I would have immediately exercised that clause and declared the loan in default. Depending on State law, your collateral is now jeopardized depending on the rights of the contract for deed purchaser. In many States they obtain an ownership interest in the property. If your borrower defaults, how do you plan to foreclose on the property? Regardless of any of that, the current vested owner of the property has to also at least be named as an additional insured.
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