Posted by Bud Branstetter on December 12, 2000 at 10:47:34:
In all likelyhood the renters insurance will have to be in his name, his signature and him covered.
Do consider using a trust, even a PACtrust arrangement. An unrecorded contract for deed can tie your property up in bankruptcy or other problems. Do check out the person with a National Tenant Network type of srvice. Someone wanting a house so bad may well be the type of person you don’t want to do business with.
Due-on-Sale and Insurance - Posted by Darren
Posted by Darren on December 11, 2000 at 16:19:32:
I own a house with an existing mortagage with a due-on-sale clause. I’m attempting to sell it as a wrap without using a trust.
I understand if I leave the insurance in my name the lender will never know of the due on sale violation. So, how do I leave the insurance in MY name??? The new owner will surely want the insurance in HIS name.
The only way I can see to do this is to just keep the existing insurance (in my name) and let the new buyer get his own insurance, but then I’m out an extra $200 per year.
What am I missing?
Re: Due-on-Sale and Insurance - Posted by TomC (Md)
Posted by TomC (Md) on December 12, 2000 at 08:43:42:
I would convert the existing policy to a non-owner-occupied (rental) type policy, and have your buyer purchase renter’s insurance for his personal posessions.
TomC
TomC
Re: Due-on-Sale and Insurance - Posted by Allan Lasley
Posted by Allan Lasley on December 12, 2000 at 02:11:01:
Less than 17 bucks a month. Just a cost of doing business. Wrap = Downpayment + monthly cashflow. The 17 bucks reduces cashflow. Bump the interest rate up a percentage point on the wrap if you don’t want to eat the 17 dollars. The main selling point on the wrap is a the no-bank - easy qualifying loan for the buyer.
You still may want to put the house into a trust to cloak it from attachment. It would really hurt to be you if someone successfully sued you while you were selling on a CFD or Land Contract and you were unable to perform when contract terms were met. A trust reduces the chance it would become attached as long as it is done right.
Re: Due-on-Sale and Insurance - Posted by Darren
Posted by Darren on December 12, 2000 at 07:52:49:
I talked to the prospective buyer and he is willing to pay me the total cost of insurance and leave it in my name. Should I have him get insurance to cover his personal belongings?