Contract for deed and insurance question? - Posted by Corey (ND)
Posted by Corey (ND) on July 22, 2003 at 14:02:07:
Working on buying a new rental house via a contract for deed. My problem is the seller has the taxes and insurance taken out of an escrow account. I don’t have a problem with the taxes coming out of escrow, but I will need to pay the insurance on my own because it would have to be in my name correct? BUT of course you have the “due on sale” clause. I am worried that if the seller stops paying taxes and insurance into an escrow that when I buy the new insurance it will show up at the bank that I am the policy holder on the property not the person on the loan. How do you handle this type of problem.
Thanks in advance.