"Subject To" question for Joe Kaiser or others - Posted by Bill

Posted by Or Others on January 31, 2000 at 16:17:41:

You won’t tip anyone off by just insuraing the property. That’s only a consideration when the loan is escrowed (impounds established for the lender’s paying the insurance out of aggregate monthly payments) or when you do something that would alert the lender that the insurance has lapsed. So, just pay on time and don’t make any mistakes.

Bill Gatten

“Subject To” question for Joe Kaiser or others - Posted by Bill

Posted by Bill on January 31, 2000 at 11:36:45:


On Jan. 28, you posted a response to Sara explaining “subject to”. My question is this…outside of putting the property into a trust, how can I take a property “subject to” and get myself covered from an insurance standpoint without tipping off the mortgage company; can it be done?



Re: “Subject To” question for Joe Kaiser or others - Posted by Bud Branstetter

Posted by Bud Branstetter on January 31, 2000 at 22:58:15:

If you change title to the land trust and add the land trust as an additional insured you are normally okay. You also get a power of attorney from the former owner to cash any insurance checks etc. Have the former owner change to a rental policy first. Some companies will not insure if there already is a policy on the property. I’m going around now with one that says they can’t convert to a rental policy without having a homeowners policy on another property for that person.

Get a new insurance policy - Posted by JohnWe (NoCA)

Posted by JohnWe (NoCA) on January 31, 2000 at 21:07:41:

Just buy a new insurance policy covering yourself, and make sure you keep paying on the old one. The cost of new insurance shouldn’t break the deal at all, especially if you don’t plan to hold it for long.