Posted by Matt Locke on October 02, 2007 at 20:08:57:
http://www.SubjectToInsurance.com provides solutions that covers the owner and leaves the mortgage company clueless to the change in ownership.
The easiest way to insure with a single policy is to use www.SubjectToInsurance.com. The second easiest way is to provide a legal letter stating that the home is being placed into a trust for “Estate Planning Purposes”. Mortgage companies understand that and traditionally have processes to handle those changes. http://www.LandTrustInsurance.com provides solutions around that methodology.
As an investor and working with investors, the idea of revealing to the mortgage company the change in ownership is rare.
Respectfully,
Paul “Matt Locke”
1-877-MattLocke
How does one get around the insurance issue on a “Subject To” deal? Because, when insurance is changed to new owners name lender gets notified… Don’t they?
Posted by Cyndi Ortiz on August 01, 2007 at 15:20:53:
In a Subject 2 purchase, despite what some guru’s promote, you do need to get bank approval. We have a real estate attorney that provided us with a document that we submit with our offer requesting that the bank sign off on the purchase and that they agree not to exercise the “due on sale” clause.
It’s not illegal to purchase on a subject 2 as I’ve personally been told by realtors, but, you can cause problems for all by hiding what you are doing from the bank. It’s best just to get their okay right up front.
Cyndi