Home Buying in Bay Minette>Question Details

2ladys, Home Buyer in Selma, AL

can a buyer get homeowners insurance if the seller is owner financing and retains homeowners insurance?

Asked by 2ladys, Selma, AL Mon Jun 4, 2012

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3
Rodney Mason’s answer
If the seller is keeping their insurance policy, then you are really not doing owner financing. It is a landlord/tenant situation. With true financing, the property will be sold and you would take title to the property. With that, you would also need a Home Owner's Insurance policy in your name. Otherwise, you should have a Renter's Insurance policy.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
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0 votes Thank Flag Link Mon Jun 4, 2012
make sure you are doing owner financing and not rent to own. The difference is that the title changes on the first and not the second.
0 votes Thank Flag Link Mon Jun 4, 2012
If the seller is keeping his homeowners insurance policy why do you also want a policy? He is keeping it to protect his investment, I am surprised he is not making you get it and putting his name on it as the lien holder so he can be sure it is being paid. But if he wants to keep it let him. You can then just get renters insurance to protect your things in the house.
0 votes Thank Flag Link Mon Jun 4, 2012
i AM OWNER FINANCING SOME HOMES; i DO NOT GIVE THEM A DEED UNTIL FINAL PAYMENT BUT LOOKING FOR A COMPANY TO LET THEM GET HOME OWNERS INSURANCE WITH ME LISED AS LIEN HOLDER. DO YOU KNOW OF ANY COMPANIES THAT WILL DO THAT IN TULSA OKLAHOMA?
Flag Mon May 19, 2014
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