Subject to - Posted by Peter

Posted by Bob In Indy on November 21, 2000 at 19:23:32:

We have the seller sign a letter that we create and send to both the lender and to the insurance company.

The letter identifies us as the Property Manager and states that a Landlord Policy is being issued and that the property is now placed into a trust.

Remember placing a property in a trust for estate planning does not trigger a due on sale.

Frankly, the customer service department handles the payment of the insurance premium and they usually don’t care about anything except that the original seller signs the letter.

Finally, Bill Bronchick stated to us that if this was a big concern then buy a second policy and pay for it yourself.

We have had no problems getting the Landlord policy paid for by the original lender. You will have more difficulty finding a reasonable rate for a landlord policy.

We solved that problem by using one underwriter for most of our homes. This greatly simplified getting insurance for each deal. One phone call now, to our insurer and virtually everything is handled by them, except for faxing our seller-signed letter to the lender.

Hope this helps.

Subject to - Posted by Peter

Posted by Peter on November 21, 2000 at 09:38:07:


I just bought a house subject to, and was wondering what do I need to do as far as the homeowners insurance?

If I get a new policy, wont that tip off the lender and perhaps call the note due in full?

Thanks for the help!