I am trying to sell a property on a land contract in Indiana. However, I currently have a mortgage on this property and therefore I need to keep the taxes and insurance in my name as they are escrowed in my payment. (Mortgage would be payed off in approximately 5 1/2 years using the full payment received from the buyers–they will be making payements for 8 years to me.) Can anyone tell me what this means though as my insurance is for a tenant occupied residence?? Will this make a difference if perhaps their dog bites someone and there is a lawsuit??? I know that they won’t be getting credit as homeowners for tax purposes or lowered taxes through exemptions. Thank you for any help you can provide.
Open a property servicing account at your local escrow company!
These accounts cost about $8.00 per month and service all the property payments on behalf of buyer and seller. The total payment is recieved and mortgage payments are paid and tax & insurance dollars are impounded until the bill comes due.
Since I am unsure of your specific state laws in Indiana, talk to an insurance agent about how insurance is written for coverage.