Insurance on Sub To

[Hamilton Borden]

I bought a house sub too! Kudos to Pace and Bigger Pockets! The house was going into foreclosure. I caught the payments up and deeded the property into my name. So I am the current owner of the house and have made 2 payments over to the mortgage company “subject to” the existing mortgage. Now a letter went out to the former owners saying they are going to require proof of insurance. Now the insurance is in my name obviously. What’s tips do you have so I don’t trigger the “due on sale” (also known as the “acceleration clause”)? They provide a link that I can upload it. Just pray they see it and don’t care it’s not in the name of who is on the mortgage?

The house would appraise for around $290k. It has about $124K left on the loan. Worst case would be refinancing out what’s left. But I would love to keep the super low rate on the loan if possible! Thanks in advance!

[Steve Vaughan]

I've always just had myself added as additionally insured vs changing it entirely.    Modifications of insurance notify the lender immediately. 

What does the guru say about how to handle this crucial aspect of sub2?