My first investment property (SubTo)

[Aj Ulloa]

Hi BP fam. I'm a newbie investor and recently closed on my first investment property and it was a SubTo creative financing deal. I have a few concerns re: insurance and hoping you all can give me some guidance here.

Timeline:
1. 10/30/23: I closed on the property
2. 10/31/23: The wholesaler gives me login details to the sellers mortgage and insurance to take over payments and switch insurance to my LLC's name.
3. 11/3/23: I call the seller to confirm the property has insurance and they mention that the policy ended on 10/28 (before we closed), but is still insured until 11/21.
Considering the sellers notified the insurance company to cancel the insurance, I'm assuming the bank was additionally insured and was notified that the policy was cancelled.

Questions:
1. Does this mean there is a risk of the lender calling the loan due? If so, how likely is it? I'm assuming a foreclosure would be on the sellers record, as they are on the mortgage? And I would lose my entry fee?
2. What is my best move here, as I don't want to have the bank to call the loan due?

Any help is greatly appreciated!

-AJ

[Steve Vaughan]

Quote from @Aj Ulloa:

I'm a newbie investor and recently closed on my first investment property and it was a SubTo creative financing deal.
I call the seller to confirm the property has insurance and they mention that the policy ended on 10/28 (before we closed), but is still insured until 11/21.
I'm assuming the bank was additionally insured and was notified that the policy was cancelled.

Change in insurance is the most common way banks are notified something is amiss.  

I'd ask whomever got you into this how to get you out. 

Nobody just wakes up one day and says I'm gonna buy a property and manage the complexity of doing it subject to the existing mortgage effectively.  Nobody.