Posted by David Alexander on March 01, 1999 at 14:54:05:
Thanks, for your help Bill. Didn’t want to be creating an Insurance nightmare on down the road, and have to come up with big bucks on all these properties.
Hope to see you at the Convention.
David Alexander
Best Ways to Handle Insurance on Subject To Deals? - Posted by David Alexander
Posted by David Alexander on February 26, 1999 at 11:31:19:
What have been the best ways to handle the Insurance.
You deed the property into the trust and then you have to change policies, that results in big bucks up front.
Could you just record a memorandum so you could still keep paying the Ins with the payment, I guess this would still null and void the old policy, since it has been deeded into the trust just not recorded. Do any of you send a letter directly to the mortgage company stating that the property has been put in a trust?
David Alexander
Re: Best Ways to Handle Insurance on Subject To Deals? - Posted by Bill Gatten
Posted by Bill Gatten on February 26, 1999 at 13:45:01:
David,
If the trust remains in the owner’s (seller’s) name, the insurance remains in his name and follows to the trust. There is no change on any of the lender’s records. He merely converts to a non-resident owner policy.
Bill
Re: Best Ways to Handle Insurance on Subject To Deals? - Posted by David Alexander
Posted by David Alexander on February 27, 1999 at 09:56:40:
Read my post and realized “I said if your right, I know youv’e done hundreds more deals than I” it was more me just not believing it is that simple. But, the question remains if the changing of the Insurance is a private transaction, something happens to the property, insurance pays, the seller to you is long gone, but you end up with a check written out to them? Just want to start covering bases before I start stacking many more of these properties.
Thanks for your help Bill,
David Alexander
Re: Best Ways to Handle Insurance on Subject To Deals? - Posted by David Alexander
Posted by David Alexander on February 26, 1999 at 20:37:22:
Ok Bill,
I’m Transferring title to trust with sellers remaining as beneficiary, I am then doing a transfer of beneficial interest to me, (will be to a corp in a few weeks)which is a private transaction. So there is no need to change the insurance. If your right I can still keep on truckin.
Thanks,
David Alexander
Re: Best Ways to Handle Insurance on Subject To Deals? - Posted by Bill Gatten
Posted by Bill Gatten on March 01, 1999 at 14:12:03:
David,
The check would come to the the “owner of the peoperty”–the Trustee. If one of the beneficiaries is not to be found, that gives Constructive Direction to the trustee to act on behalf of the remaining beneficiaries in such matters. A certified letter is mailed to the last known address with notification that an action will take place on a given date, and failure to respond constitutes approval. It is the parties’ responsibilities to keep the trustee notified of their current mailing address at all times.
Bill
Re: Best Ways to Handle Insurance on Subject To Deals? - Posted by Bill Gatten
Posted by Bill Gatten on March 01, 1999 at 14:40:27:
David,
Three things: 1) Have the trust named as co-insured or additional insured (not necessary for coverage, but comforting for you), 2) Be certain that a letter goes to the insurance company, explaing that the the legal owner of the property is now the mortgagor’s trust which trust is remaining in the mortgagor’s (their insured’s) name; and 3) Be certain that the HO (if an SFR) policy is converted to a non-resident owner (Landlord) policy.
Bill
PS, Thank you for being one of the select few who figured out that you don’t me to do this for you, and that I’m not trying to sell anybody anything by runing up and down the street screaming about the benefits of this arrangement.