So I bought a 4 plex last year in utah from a seller(jane) who has an existing mortgage(via Ditech) on the property. The Contract servicing company("escrow specialists") is forwarding my payments to diTech. Ditech is making the payments to Jane's insurance company. We went through a title company and the building is now appearing in my name on county records.
My question is: How can jane be insuring something that I own? My insurance guy said that the insurance policy should be in my name. is this correct?
Updated almost 3 years ago
This was bought with Seller financing.
Yes, right now you have no legit insurance, but this is where you may tip off the lender that the property has changed hands.
This is why I don’t buy properties owner financed with existing notes. Yes you should have insurance if the property is deeded in your name.