Insurance companies and "Subject to's"

I did my first Subject To less than a year ago, where I took over her mortgage from Mary and then did a wrap around with trust to sell it to the new buyer Bob…

Mary, whose loan I took subject to, called today to say that her insurance company knows that she doesn’t live there anymore and wants to cancel the policy.

How do I get new insurance on the house without the mortgage company knowing that we have taken over her payments? We do not want them to invoke the Due on Sale clause.

Should the new owner have to pay for it? Should Mary ask for Tenant insurance?

It seems to me that if you are deceptive on this that fraud is being conducted.

We have nothing fraudulent. The deed was transferred to a trust created by the Seller.

if the seller has deed in a trust they created, and buyer is in the house, what role have you still in this? if you are trying to keep information from a mortgage company then there is deception going on…


If you did this properly with a land trust and didn’t play games like name yourself or a friend as trustee, you are exempt from the DOSC as long as you allowed Mary to retain at least a 10% beneficiary interest in the trust. If not, you have violated the DOSC. At the same time, Mary should have converted her homeowners insurance to landlord insurance.

In either case, I would make sure my tenant has renter’s insurance and take out landlord insurance myself, naming Mary as an additional insured.

What percentage of the trust do you, your seller and your tenant share and whom did you name as trustee?

Da Wiz

I am in the process of wanting to invest in my 2nd home but, having
trouble with the financing. Do i take out a home equity or refinance?
If I refinance what type would work for me option arm is what I been
told to get.
I bought my condo 8 years ago in the Bay Area for $127,000 and it is
now worth $420,000. The home that I am looking to buy is between
$387,000-$445,000. Can anyone give me some advice. I went to Dave
Lindahl’s seminar in San Francisco and bought his product and have
been listening it to it and I hope to buy some apartments in near

Thank You


I suggest that you post this as a new topic. Nobody is going to find you here.

Da Wiz