Updated about 5 years ago on . Most recent reply
Insurance On Wrap / Seller Carry
Hi Everyone,
Alright so I'm in the middle of my first "seller carry" deal, there is a property that the seller is can no longer afford the payments to and have negotiated the following with the seller. They will allow me to take title and have setup a wrap with title where they will service the current loan. So basically the loan is not assumable and I'd rather not go conventional on a loan since I'd have to do 25% down for the investment property loan so my plan is to let appreciation do it's thing and then finance it conventionally at that time. Title has a loan servicing option so the idea is that I get title and make payments to them every month which would go to the loan company making sure the PITI is paid every month.
My question is, how does one go about getting home owners insurance on this. I'd assume it would be the same process as usually by calling my insurance company but my thoughts are wouldn't a change in insurance and name of the person insured be a red flag for the loan company and possibly call the loan due? Not sure what everyone else does when they do something like this, any thoughts?