Homeowners Insurance with Contract for Deed

mrs.t.williams · September 2011

We sold our home contract for deed, we still have the homeowners insurance in our name and the current owner is paying us monthly for the insurance in the agreed payment. I want to keep the insurance in our name but she is wondering if something is to happen how they will get reimbursed for their losses too. I don't want the mortgage company to find out we are doing CFD in case they were to want the mortgage paid in full. Any suggestions how to figure out homeowners insurance so it is fair for both us and them?

Thanks

car_ramrod · September 2011

I am not going to comment on the ethics of what you are doing but, I will say that you should be able to add them to the homeowner's policy as additional insureds. My DH and I did this before we were married so that my stuff would be covered in the event something happened. It did not cost anything extra.

mrs.t.williams · September 2011

Thanks for the response. Not sure why my ethics are in question here. We are just doing a standard CFD.

car_ramrod · September 2011

mrs.t.williams:
Thanks for the response. Not sure why my ethics are in question here. We are just doing a standard CFD.

While trying to hide it from the bank since it is probably against the contract you signed with them.

mrs.t.williams · September 2011

Well we couldn't pay the mortgage in full if the bank did indeed ask for it to be paid in full and our buyers couldn't get a mortgage to begin with so we would both be screwed. The bank is still getting its money.

Homeowners Insurance with Contract for Deed

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