Prop Tax And Hazard Ins In Sub To Purchases
When you do a Sub to purchase with the exit strategy being LO or CFD sale, do you start paying the hazard ins and property taxes during the LO/CFD period?
I'm thinking 'Yeah, you got the deed, you got the taxes.' But the ins is a condition of your sellers original loans.
Any help would be great.
Molotov
yes
Yes, when you get the deed, as owner, you are responsible for taxes and insurance. If you sell on L/O, you still maintain the taxes and insurance.
If you sell on CFD, however, your buyer pays taxes and insurance. It is a good idea to escrow them from your buyer though, and you pay them for your buyer as you don't want to have problems later with your buyer not paying and you getting a lien on the property.
[addsig]
Hi Molotov,
Yes,
And like we recommend in the manual, to use a Loan Servicing Company so they can take care of the distributing of the buyer's payment for the underlying mortgage, prop taxes and insurance and profit.
Best of luck
John (LV)