Re: Contract for deed and insurance? - Posted by Jim FL
Posted by Jim FL on October 29, 2003 at 20:56:53:
Don’t make it more complicated than it has to be.
Get a new policy yourself, since the rate is better.
When you do, the insured needs to be the title holder, and anyone else holding an interest in the property.
That would be your seller, the lender, and you, or your company.
The proof of insurance can be sent to the lender I would think without problems.
They will see the collateral is covered, the policy is a rental dwelling or non-owner occupied type, and some lein holders, which surely they’ll assume your company is in all likely hood.
You could also have the seller deed the house into a trust, have the trust sign as the seller in the contract sale, and the insurance listing the trust as insured/loss payee along with the lender.
This would also solve it, and if you show the seller this protects her a little, by shielding the property from leins caused by her personally, as well as saving a few bucks on insurance, they should come around.
Either way, I don’t see this as that big of an issue.
The lender wants payments and protection for their collateral, that’s about it.