Hazard Insurance
if the investor catches up the back payments and taxes and the homeowner sign the deed over and the investor then begins making the payments, I understand you don't want the lender to know since most mortgages have a due on sale clause; however, how do you get around the insurance policy showing a new owner?
We don't excersize a due on sale unless we really have to. Where I work, we just verify that the collateral is insured, and thats really all we care about. We would only excersize due on sale if the person fell behind on payments. Why foreclose when the payments are coming in?
This article I wrote may help:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=472
Hope it does.
Tim
thank you both. the article was very helpful although I still don't understand why the bank wouldn't call the loan. they have loaned money at say 5% (perhaps the borrowers were previously somewhat saavy) on an owner occupied property. in a year or so when rates are probably going to be 8% or more for nonowner occupied, I just think they would want to rewrite the loan.
just trying to get some things straight in my mind if the right situation arises - no immediate need - again, thanks
Who is to say you don't refinance...with another lender???
ding, ding, ding!! the bell now went off. I knew there had to be a simplistic answer that was just escaping me. after getting the property into my name and properly insured, refi before the bank calls the note - should be 60 - 90 days and that is more than enough time to refi. thanks again
I am glad the bell went off, but in today's mortgage environment, the ability to refinance "easily" is reason to keep a lot of lenders from calling the note (my opinion)...