Dallas-Fort Worth Real Estate Investor Club

Subject to and insurance

  • 16 Apr 2013 8:51 PM
    Quote
    Message # 1270525
    Hassan S
    Hi All,

    I have done several OF deals where I hold a note. I owned these props free and clear.
    I now have a couple of rentals (with underlying loans) that I want to OF.

    How should I handle the insurance? Do I have the buyer list the bank as 1st mortgagee and myself as 2nd mortgagee?
    Do I keep the original insurance I have as the owner?
    I was about to purchase the subject to course listed on this site but I am not sure if this
    is addressed in it.

    Much appreciate any info. Thanks
    hassan
    Last modified: 16 Apr 2013 8:53 PM | Hassan S
  • 17 Apr 2013 9:14 AM
    Quote
    Reply # 1270945 on 1270525
    Richard Kellett (Administrator)

    Good Question! The man to answer that is Dave Burdick whose phone number is listed on this site in the links section.
    If I can be of any other help to you, please feel free to call me.

    Dick Kellett
    8178-915-0122
  • 17 Apr 2013 3:43 PM
    Quote
    Reply # 1271334 on 1270525
    Deleted user

    A bit confused.  Do you own properties free and clear?  If so you would be listed as the mortgagee on the ins policy.

    If there is an underlying loan and your creating a new note which will be wrapping the 1st.  You would be listed as an additional mortgagee or other interest. 

    I'm not in the insurance business but this is what I have been instructed to do on my deals.
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