Is insurance necessary if I'm carrying the note? - Posted by TD

Posted by JT-IN on January 13, 2004 at 17:51:47:


Your Mtg and Note docs (or Deed of Trust) should require that the Debtor carry such insurance on the dwelling, and also name you as an “additional insured”.

In doing so, you will in turn be notifed if coverage ceases for any reason, and have the right to place insurance on the dwelling in the event that the owner defaults on that obiligation. Of ocurse if you have the need to insure the dwelling, the cost of such insurance is a recoverable expense.

It is advised that you have an Atty draw up docs to cover the Mtg and note… or use standard form, Freddie Mac docs for your state, which cover such events.


Is insurance necessary if I’m carrying the note? - Posted by TD

Posted by TD on January 13, 2004 at 17:33:16:

I plan on offering seller financing to a buyer. I will add interest with 7 year term and will give him the title at closing. I will have a lein on the house if he doesn’t make good on his payments.

Will I need to add insurance?