I am purchasing a friend’s pre-forclosure home on a sub2 basis. The home has just completed construction and the one-time construction loan has become the permanent financing through a Texas bank. I am paying two back interest payments on the construction portion and the first payment on the permanent portion. Since I have NEVER done this before, I have a few dumb questions!
- Can I just prepare the required documents and file the new deed or is it necessary to go through a title company.
- I have read that it would be beneficial to create a trust. I’m in Texas and there is no Land Trust in Texas. A living trust could be created, I’m just no sure it is necessary, especially since time is critical.
- Should I have the old owner send a letter to the lender advising that I will now be the property manager and that I have POA?
- What about the insurance? Should I purchase a standard property policy (Not Homeowner Policy) in existing owners’ names and another in my name?
- How do I change the name at the tax office? or do I?
Thanks for any help!!!