Help-subject to deal... - Posted by Mindy

Posted by RS (So. CA) on February 05, 2002 at 16:24:22:

I have been meaning to ask this for quite some time, but it has slipped my mind: is all of this done at the same time?

a rather basic question and perhaps obvious, but I don’t want to assume one way or the other.



Help-subject to deal… - Posted by Mindy

Posted by Mindy on February 05, 2002 at 11:29:57:

HELP! I am so confused about what to send to the mortgage company and to the insurance company regarding the “subject to” deal I am currently involved in (my first one). I have been overwhelmed by all the different issues to cover. Isn’t there a simple way to handle both companies without a lot of hassle? The house was awarded to the ex-wife in the divorce decree, however, the ex-husband is the only one named on the loan. I am having them both sign a CYA letter ( from Ron LeGrand’s course). The ex-wife is leary of changing to a landlord/renters policy because she doesn’t want to lose any type of discount she is receiving from having both her auto and homeowner’s insurance at the same insurance company. We are set to have the papers signed and notarized in 3 days. Please advise me step-by-step what information you would use that will take care of ALL the issues regarding this. I appreciate all your comments. Mindy

Re: Help-subject to deal… - Posted by Terry (Houston)

Posted by Terry (Houston) on February 06, 2002 at 02:01:37:

I don’t want to go into the whole insurance thing for subject to again, it has been beaten to death on this board, but the ex-wife needs to understand that as soon as she moves out the policy could be deemed no good.

The reason being is that the owner is no longer living there. Unless it is a non-owner occupied policy they may deny a claim. That might wake her up a little.

Also at the closing get the coupon book or have the monthly payments sent to you via a change of address.
I don’t send them anything unless I need to make up back payments, the change of address works fine for me.

Get a copy of the survey from when they closed.

You might get a copy of the deed and the mortgage or deed of trust and promissory note to make sure you understand the terms well.

Information pertaining to the home owners association and all the right contacts for utilities etc…

One other thing is to be sure and get a copy of their drivers licence and social security cards if possible. If not, at leaste get the numbers. Tell them it is part of the ID requirement for the notary. You don’t want the ex to come back and say they did not sign anything. The SS# is a must to have as is a date of birth.

Any codes to the alarms or the garage doors etc…

And codes or passwords they used for online access for the mortgage company.

Hope that helps a little.

Terry (Houston)

Re: Help-subject to deal… - Posted by David Garcia

Posted by David Garcia on February 05, 2002 at 12:26:25:

If seller does’nt want to get rid of her insurance policy, you can keep it in tact, but get another one, a landlord one.

Brief summary of the subject to:

  1. Seller creates a trust.
  2. You are the trustee.
  3. Seller puts home in that trust.
  4. Home is deeded to that trust.
  5. Seller assigns you as beneficiary of trust.
  6. Letter to lender & insurance that home is in a trust.
  7. POA

only warranty deed gets recorded & notarized, the rest get just notarized except letter to lender & insurance.

Re: Help-subject to deal… - Posted by Terry

Posted by Terry on February 06, 2002 at 22:01:52:

Thank you Terry, I have been doing a lot of research, mainly picking the brains of my local REIA group and pouring over the archives here to learn more. We are set to complete paperwork in 2 days-yea!!! I feel pretty good now about what I will say to the wife regarding the insurance. Thanks again for your reply, I appreciate it…