I am putting a subject to deal together and the seller is ready to go.
Seller has a HELOC. I will be taking this over sub2. Putting the house into a trust and(ex 123 main st trust) assigning my company as trustee
The seller asked me a question regarding keeping the insurance in place as well. I will be putting a tenant buyer in to purchase down the road.
Is it fine to keep the insurance and the taxes (in sellers name) and continue to make the regular payments?
Any help would be well appreciated. Thanks
Do not keep the insurance in the sellers name. Get a new policy and have the seller on it and you as co-insured. I hope that you took title in a land trust. If so you may be able to slide the taxes for a while but you will eventually get to pay them.
The insurance needs to change from the sellers name and from a homeowners policy to a policy reflecting the fact that you are not in residence. If you don’t you could find yourself without coverage. Speak to your agent and explain what is going on. It is not that unusual.
Thank you very much. I really appreciate it