Updated almost 6 years ago on .
Wrapping Institutional Mortgage?
My tenants approached me about buying the home that they've been living in for a few years. I have no attachment to the property and can probably do better with my cash elsewhere. If I were to sell it to them and carry back a note/mortgage (wrapping the 1st), how do I handle the following items?
1. Taxes - the 1st mortgage on the property doesn't have an escrow account. When title transfers, I'm guessing the tax payer name would just switch to the new owner?
2. Insurance - Same as above. Do I switch my insurance policy from a Landlord policy to mortgagee ATIMA ?
3. Reg Z / Dodd Frank - This will be the 1st seller-financed note/mortgage I create for the year. The buyer will be an owner/occupant
Anything else I need to consider? (aside from risk of Due on Sale)