There may be several ways to do it but what I started doing was having the seller change their current policy to a landlord policy with a $1,000 deductible and adding the land Trust as additional insured. Big pain in the butt. For some reason the insurance co’s didn’t want to cooperate with this and I tried sending a request signed by the seller, etc. I didn’t find it to work very well, and actually had a couple of houses that weren’t legally insured once. To say the least, I didn’t like that too much so I’ve changed strategy.
Now what I do is have the seller fill out a cancellation form and cancel thier policy all together. I have trained my insurance guy (alot of work but worth it) to set up a new policy for each property with the Land Trust as the primary insured and add the sellers as additional insured to make the mtg co happy. He contacts the mtg co for ABC Management CO (me) for 123 Main St (the house now a rental)owned by John Doe (seller) and has the premiums escrowed and paid to the insurance, etc.
So far so good. It took a while for my agent to get his underwriters to set them up with the Land Trust as insured but we’ve finallly got it all down - I think! He’s happy because I e-mail him the info on the 2-3 houses per month that I’m picking up and he’s done all the work in setting it up and now all he has to do is rack 'em up as they come in. He loves it.
Hope that wasn’t too rambly, but to me insurance is the biggest pain. - Scott
If i get a deed from someone that gets their statements mailed to them, how do i handle it if the address change on the back of the statement won’t take effect for 4-6 weeks? For example, i get a deed and fill the property in 3 weeks and the statement will still be sent, for the next mailing, to the property that now has a tenant buyer in it. Who knows if they would forward it to me? Will it work sending the lender a letter or fax saying “as of now send all correspondence to…” If i want to list my management company as “C/O abc mgmt. co.” on the address, do i list that on the back of the statement change or fax this to the lender? Thanks.
What I’ve started doing is have the seller call the mtg co. and have them verbally change the address which makes it come to me pretty quick. I have also been sending as backup a letter signed by seller to mtg. co. requesting the change of address to ABC Management CO. (my address)
I wouldn’t worry about it going to the house because the seller has probably (help them if they haven’t) changed thier address with the Post Office so it will go to thier forwarded address.
This is one of those pain in the neck details doing sub 2 deals that I don’t care for. Just like the insurance thing, ugh! But A little inconvenience is worth it when the checks come in!
When they call in to change it do they leave their names “C/O Scott’s Management company”? Or list your mgmt. company as addressee with no mention of their names in the address? or something different? Thanks.
Re: sub2 changing mail address - Posted by Russ Sims
Posted by Russ Sims on April 11, 2002 at 17:45:17:
Good suggestions by Scott…I might ad that although the statements might take a while to start coming your way, you can still simply send in the payments so long as the account number is referenced. When I initially get the statement from the seller, I photo copy the payment coupon. The photo copies are what I use until the actual statements start arriving.Never had a problem with this…
Usually the Mtg CO wants to leave it in the sellers name with my address. A couple have put c/o ABC Management Co. I have a good relationship with the people at Mail Boxes Etc, and they know stuff comes to me all kinds of ways. So I’ve not had any problem.