Help! Can I Get Home Owners Insurance In My Name?
Hello Everyone:
I have to call the buyer back A.S.A.P. The owner does not have the Home Owners Insurance and Taxes included in her mortgage. She is going to deed the home over to me but at the last minute she says that she cancelled her Home Owners Insurance. Can I put the Home Owners Insurance in my name? Will the Lenders find out if I did that?
What will I need if it is o.k. to put the insurance in my name?
S.Berry
Go ahead and have her deed you the house. Have you already run a title search and gotten payoffs on the liens? Once you deterimine that the numbers work for you, then get insurance with you as the insured, the mortgage company as the loss payee, and the previous owner as an additional insured. You need a non owner occupied policy as you are the owner and you are not living there. Do not cut corners with the insurance. Either buy the correct insurance or do not buy it at all. If you spend money on the wrong insurance, it will not pay your claim anyway.
Thank you so much. Will do. How much time do I have to do this? Will I need to take care of this A.S.A.P?
Quote:Lenders will not close a sale without an insurance in place by buyer.Why is it that seller must have an active policy? Please somebody tell me.
Konte,
This is a purchase subject to the existing mortgage. There is no new lender involved. Even though the lender does not escrow for hazard insurance and taxes, the lender will still be notified that the homeowners insurance policy was cancelled.
If a new policy in not in place soon, the lender will order a replacement policy anyway. The premium for a "forced placement" policy is usually quite a bit more expensive than the borrower would pay if he ordered his own insurance.
The forced placed insurance also only covers the lender, NOT the owner of the property...
[addsig]
can u give more info?
one thing to look for is that ur mo. pmnt is not out of line with the amount of the mortgage-to-be (i.e. high current apr, or 15yr vs 30yr) and can support a higher pmnt with your margin for profit, AND the area is good and schools are good