“Subject to” - Contracts and Insurance - Posted by Jim (TX)
Posted by Jim (TX) on June 17, 1999 at 08:49:42:
A very motivated seller deeded his house to me. I took title as the trustee of a land trust with the owner as the beneficiary. We then assigned the beneficial interest to my fiancee.
The questions are: 1.) If I sell with owner financing, is it best to use a Contract for Deed? And what if the seller wants title insurance? (It is my understanding that a title company will not issue a new policy without paying off the underlying notes.)
2.) If I sell the house with NQ owner financing, what is the best way to get homeowner’s insurance? Under the original financing, we are escrowing for homeowner’s insurance. Does the buyer need to get a whole new policy? Or is there a work around that will allow us to use the current policy?