Re: Insurance in a wrap- maintain it

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Posted by Michael Morrongiello on October 13, 2009 at 00:59:45:

In Reply to: Insurance in a wrap posted by Tom on October 12, 2009 at 19:38:05:

Tom:
If the undelying lender loan account is an escrowed impound account where there is collection monthly for taxes and insurance then its wise to LEAVE that insurance in place - as opposed to tipping off the lender that a deed / title transfer may have taken place.

You charge your borrower the SAME monthly impound amount that the underlying lender is charging you.

As for claims, or the concern of potential clams, you can ADD your name, entity name, etc. to the insurance declaration page (naturally with proper authorization from the party whose name the loan is in)- as an "Additional Insured"

So, now the insurance coverage will extend to the prior owners name, the 1st lien mortgagee (underlying lender), and the Additional Insured party (you or your entity- LLC, Trust, Corp., etc.)

Hope this helps.....

Michael Morrongiello

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