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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] What about a formal assumption or land trust?? Posted by Ward-CA- on May 15, 2003 at 9:29 PM In Reply to: Insurance posted by matt on May 14, 2003 at 7:18 PM : Hi Ward : I'm having a tough time finding a company to provide homeowners insurance (in the SF Bay area) on a 'subject to' deal (since the loan is in the seller's name and the policy needs to be in my name). I called the guy you recommended, but they are no longer doing those types of policies. The payoff for the loan is about $95K and there's about $45k of profit in it for me. Any ideas from anyone? What about just paying off the loan? It would tie up my cash for a couple months, but save carrying costs and allow me to get a policy. : Thanks! =•=•=•=•=•=•=•=•=•=•=•= Matt, Why not enter into a formal assumption of the existing $95K loan? Seems to me it would take no more money that an assumption fee of probably 2% plus $250 (almost $2,000). Yes, you’d have to qualify financially for the assumption, but then you’d have to qualify for a loan to pay off the existing loan too. So the assumption route seems to be your quickest and cheapest route to take unless you used a title holding trust to sidestep the due-on-sale-clause. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward : : I'm having a tough time finding a company to provide homeowners insurance (in the SF Bay area) on a 'subject to' deal (since the loan is in the seller's name and the policy needs to be in my name). I called the guy you recommended, but they are no longer doing those types of policies. The payoff for the loan is about $95K and there's about $45k of profit in it for me. Any ideas from anyone? What about just paying off the loan? It would tie up my cash for a couple months, but save carrying costs and allow me to get a policy. : : Thanks! : =•=•=•=•=•=•=•=•=•=•=•= : Matt, : Why not enter into a formal assumption of the existing $95K loan? Seems to me it would take no more money that an assumption fee of probably 2% plus $250 (almost $2,000). : Yes, you’d have to qualify financially for the assumption, but then you’d have to qualify for a loan to pay off the existing loan too. : So the assumption route seems to be your quickest and cheapest route to take unless you used a title holding trust to sidestep the due-on-sale-clause. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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