Subject To

When buying subject to existing financing or with owner financing should you work with a title company to record the deed? Should you purchase a new homeowners policy?


 Yes, you want to use a title or escrow company to prepare the documents and record the transaction.

Ask the title or escrow company to open a servicing account for the deal and have your money pay directly to the servicing account and the “Subject To” or “Owner Financing” payments paid through the servicing account. Ask the title or escrow company closing officer or manager about there recomendations for handling the property insurance in accordance with there knowledge on state laws and previous closings?

Good luck,


you do not need a title co for closing until you have a buyer getting new financing, then it’s all their dime, not yours. it’s most likely a waste of money on your buy side. Besides, most title co’s DO NOT know what subject to even is. Most of those that do think it’s illegal or can’t be done, even though it’s on the HUD-1 and perfectly legal. You can do your own title search and your own closings. You just need a notary for your deed and possibly contract for deed when you sell.

You do not need title insurance for an S2 transaction either. Just be sure to do a complete title search. You can record your own deed as well. Just be sure you record the correct deed based on state specifics. Some are General Warranty Deeds, Limited Warranty Deeds, etc. Some are Grant, Bargain and Sale Deeds, etc. Check your state codes or a title co/attorney. You can also check with your county auditor’s dpt or county recorder as to what type of deed you need to record in your state.

Most title co’s DO NOT service loans either. Some do but they are hard to find. You can search your local area for loan servicing co’s or search the www for or the like.

usually you can convert the insurance to a landlord policy but it must stay in the orig borrower’s name. just change the mailing address so the info comes to you. DO NOT tell the insurance co the nature of the transaction. Though it’s not illegal, they do not understand it and will most likely cxl the policy. NO FLAGS! If the ins co does not do landlord policies, get the orig borrower to get a new policy for landlords w/ another ins co.

remember an S2 transaction is not a typical one. there is no new financing needed therefore no hoops to jump thru and no money wasted on fees and services that are not needed. when you deal with banks and lenders you jump thru hoops. if you want to jump thru hoops join the circus. there are plenty of hoops there. good luck

Good to meet you

Rule of thumb

  1. If you have skin in the game, either money or equity buy title insurance and if flipping buy a rider policy too,

  2. No skin then it is your call after your review of county records. Just know that what ever is attached to the property (voluntary and involuntary liens) go with it and if there isn’t insurance to protect you then youll need to disclose that to the buyer if you wrap or use a LC.

Good luck


The only thing needed from a title is a title check; NOTHING ELSE! And yes, you should get your own haz insurance or advise it to the buyer your flipping it to to do so. Let me know if I can help you further