When buying sub2 do I have to escrow the insurance if its already escrowed now? Id like to just make payments directly to my agent if possible and avoid having to pay my yearly premium all at once, this is my first sub2. Thanks
Your insurance more than likely will be happy to escrow payments
I’ve personally done hundreds of deals like this over the past 25+ years and I would caution you on a ‘subject to’ deal to minimize any changes…if the insurance is currently escrowed, it is a good thing to continue the arrangements for insurance the same way in the future. Your question (do I have to escrow the insurance if its already escrowed now), the answer is no…but why put up a potential red flag.
All the deals I’ve done, no ‘calls’ on the ‘due on sale clause’ as the only things done are typical for financial planning (such as putting the property into a trust and appointing me/investor as trustee or authorized representative for the trust so that we can communicate with mortgage company with authority.
Changing insurance premium method would be okay, however, I would consider having the change done prior to closing and done by the party who is obligated on the mortgage documents.
Hope this helps.
Rob in Atlanta