Posted by Bronchick on October 28, 1998 at 10:00:17:
When title is changed hands from seller to the trust, the policy is amended to name the trust. Most banks wouldn’t think anything of it and assume the seller did some estate planning. The other option is to simply ignore the old policy (it is being paid, but void) and obtain a new policy not naming the lender.
INSURANCE on property sold as Contract For Deed - Posted by Jaydee Bredenkamp
Posted by Jaydee Bredenkamp on October 28, 1998 at 09:38:07:
Hoping someone out there can enlighten me on insurance.
If a property was bought in a trust and sold on the contract basis , as is suggested by JD Bronchick’s article ’ Beating the Due on Sale ’ , what is the procedure regarding insurance ? - Have the new owners obtain their own insurance or assume the existing insurance on the
property ? If the new owners obtained their own insurance on the property would the note holder ( Bank ) not be suspicious after 2 or 3 years if there were no demand of insurance payment from escrow in which case they would want proof of insurance and at which time they would ’ cotton ’ on to what has transpired ? If on the other hand the trust were to assume the existing insurance on the property is it not silly to maintain insurance in the trusts name for the benefit of the new owners ? Seems a bit dangerous to me ?