Sub 2 Items In Limbo...?
What happens to or how are the following items handled when taking possession of a property Sub 2:
Title insurance, home owners insurance, who claims mortgage interest on taxes.
If I buy sub 2 and then owner finance to another buyer and they don't make payments....do I have to go through the foreclosure process? How do you CYA?
Two things...
1. Buying a course can be a good idea at this point. There are different ways to deal with the hazard insurance question.
2. On the sale to you buyer. As noted, one alternative is a L/O. If they fail to pay you only have an eviction of a tenant.
Depending on the state, land contracts (CFD) can be used. In Oregon the statue has a fast recovery process when the buyer has below 25% equity. Much closer to an eviction then a full blown foreclosure.
3. As to the taxes and deduction of the interest paid... A lot has to do with if you hold the title or if you have sold the property on a LC. If you L/O the property you are the owner. If you LC the property you have sold it and the buyer gets the interest deduction. Sometimes buyers really want this. More so when the property price is high.
John
[addsig]
This is for wannabe 21, If you have a power of attorney then you would be able to file and collect a claim with the current insurance on the home w/o having to get a 2nd policy. I believe this is accurate.