There's a property I'm looking at in Florida that has been on the MLS for just about 90 days. I briefly spoke to seller and got her motivation and some facts about the property. I would like to pitch a sub to deal but not clear what happens to the home insurance portion. I know that once it changes hands the lender gets notified and can proceed with the due on sale clause. It would be a hybrid deal if the seller agrees because she has some equity. Her mortgage payment PITI is about $500 a month and I can rent it for at least $1600. So how would I avoid the due on sale with the home insurance portion? An executory contract?
If insurance and taxes are escrowed monthly you would pay whatever the existing owner has. Get your own insurance policy covering it with your name on it
If insurance and taxes are escrowed monthly you would pay whatever the existing owner has. Get your own insurance policy covering it with your name on it
Yes but once I get a new policy for the property the lender gets a letter the deed has changed and risk of due on sale clause comes in.
Hi All, I hate to have a good sub to deal go south by not understanding all the details and MANY complications post closing. Like canceling the occupant ins policy and putting y9our own renters policy on listing the BORROWER as also insured AND the lender as the mortgagee (escrowed) and also listing you as also insured (or in my doc case, the land trust name; 123 Main Family Trust).
Connect with me then PM and I'll send you my free but extensive sub to training complete with doc examples. Much missunderstanding.