Subject to deal - Escrow account question

[Sid Siddiqui]

Hello All, 

Seeking some experts advice. I have searched through the bigger pockets forms and pod casts and really have not found the answer that I'm looking for. I recently did a subject-to deal and now I'm in the middle of wrap around the existing note and owner finance the property. My questions is that I'm currently making the mortgage payments on the first note for couple of months that already has an escrow account under the seller's name of course and now that I have buyer for the property, I would like to setup an escrow account to make sure I collect the taxes and also ensure the property is insured. My attorney just called and said I'm not able to setup an escrow account on top of existing escrow. My buyer wants to pay monthly payment including PITI so they don't have to go out and get a separate insurance and make another payment. How do I secure my asset if in case it burn down tomorrow. If I call the bank and try to cancel the existing insurance policy on the first note, they probably will not like that, and I'm afraid of the due on sale clause. I'm little bit stuck here and need help?

I'm sure as a real estate investor, someone has done the transaction where you take the property subject to and then sell it with owner finance with a wrap? In simple words how do you handle the escrow?

Thanks!