Refnancing A Subject-to And Insurance
Hello, I am refinancing a property I tookover Subject-to last year. The lender wants me to Quit-claim the property back to me before the refinance. What do I do about the insurance? Do I get a new policy with myself, the Trust and the original Mortgagors on the policy? The original policy had the Mortgagors and the trust as insured parties.
Regards,
Joe
[quote]
On 2004-11-23 15:32, traderj wrote:
Hello, I am refinancing a property I tookover Subject-to last year. The lender wants me to Quit-claim the property back to me before the refinance."
I hope you are saying that the lender wants a Trustee's Deed completed in your name to transfer the property out of the trust, and into your name personally.
"What do I do about the insurance? Do I get a new policy with myself, the Trust and the original Mortgagors on the policy? The original policy had the Mortgagors and the trust as insured parties."
Once you refi, the financing will be in your name, and the original loan will go away. This property wll no longer be "Sub2" it will be yours, It would be appropriate for you to get your own insurance policy. After the refi, you could place the property back into a land trust for estate planning purposes if you wish.
You may check to see if it would be ok for you to personally guarantee the new financing, and leave the property in the trust (for estate planning purposes).
Good luck,
Jeff