Okay - sent out a question a couple of days ago with NO response?? Well, I figured the contract out and we are going thru an attorney. This is a Sub2/wrap-around. But, The mortgage is with PITI. The seller would like to get her name off of the insurance as she is moving out of state. Just double checking: I should put the insurance in my name with the same company? Does the mort. co. just allegate the funds directly to the ins. co.? If so, will this help with my DOS? Really need an answer or at the very least some opinions on how others have handled these…
You have to have the sellers name remain on the insurance… add the new buyer as the additional insured…
The DOS… forget about it… just keep the loan/payments current… and in good standing…
Yes, mortage company can pay directly to the insurance company… if you however cancel the ins. before the anniversirary date… you’re asking for trouble… you end up sending the escrow payments through the roof…
Thank you for your response! The seller’s mom works for an ins. co. and handles her account. She told her to cancel? I will try to add on as additional tomm. and see if this will work. If not, any other solutions? so as not to raise flags. I have 2 days before closing.
I have always had trouble getting added as additional insured, so I ALWAYS purchase my own insurance policy and keep the one they have if it is part of their mortgage payment.
Darin