Mississippi Officials Warn Against Buying Cottages in Auction

March 13, 2009

  • March 13, 2009 at 12:59 pm
    JR says:
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    Can anyone explain why insurance companies complain about grey market or salvaged units, trailers or cars? Why are they allowing these things back on the street. Why are they not sold to a salvage dealer and crushed, disassembled, etc?
    Since they take ownership via title on all total losses, they should have a responsibility to make sure these things are never able to be fixed back to a level that an unsuspecting buyer get a piece of junk that looks like a good deal.

  • March 13, 2009 at 4:57 am
    wudchuck says:
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    i agree, afterall, these cottages are not on a mobile lot. why not remove them and burn them accordingly. clear the lot and sell the land that the building was on. they can get new $$$ for a clean slate than one w/mold!

  • March 14, 2009 at 6:25 am
    Janet Cagley says:
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    Thousands of “salvage” insurance items are resold every year. Many of these items are put back to very good use. As long as the buyer is completely informed of what they are buying this serves two very useful purposes. It helps to recycle and prevent waste (It would cost hundreds of thousands of additional dollars to dismantle these units.) and it helps to cut insurance costs. Insurance companies try to recoup as much of their cost as possible. This helps to keep costs down for every consumer. Furthermore, these units were never totaled by the insurance company. The insurance company agreed with the State of Mississippi that if the total cost of repairs on these units exceeded a certain amount of the total cost, then the insurance company would pay the State of the Unit and take possession of it. That is what happened and now the insurance company and the auction company have the legal right to do with them what they want.

  • March 16, 2009 at 10:45 am
    JR says:
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    So these companies would be more than will ing to reinsure one of these units that were paid out in a claim.
    Most people are not aware they are buying salvage. It happens in Florida every day. If you transfer the title to a couple of other states, they issue a title that does not indicate salvage. Then you transfer it back to Florida and it is clean. And someone has just bought a pile of crap that was a total loss and they will never know it. It MAY show up on CARFax and then it may not. and if it is one of these cottages, it will not. The insurance companies have a duty to do better on these situations.



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