Flipper/Rehabber · Jacksonville, FL · Member since 2015 · 105 posts · 26 votes
I'm looking for guidance on how to handle a live-in subject-2 deal. I don't want to have 2 policies (seller's and mine), and I can't get a non-resident landlord policy because I would be living in the home. Is the best thing to do just get a new policy, with my name as first insured, and cancel the sellers policy? Will the lender care? Or should I talk to the lender first and see if they are cool with that?
I send POA and third party authorization to lender notifying them to what is going on. I am always honest with lenders and have never experienced any difficulty working with them. They must get appropriate docs from you before they will share information with you.
Seller's policy is no longer valid because they are not living in residence (assuming they have a standard homeowner's policy). Cancel their policy and put your own in place with them added as additional insured.
I send POA and third party authorization to lender notifying them to what is going on. I am always honest with lenders and have never experienced any difficulty working with them. They must get appropriate docs from you before they will share information with you.