Owner financing -Taxes and Insurance question

[James H.]

Can someone explain who's responsible for the taxes and home owners insurance on an owner finance deal? How are all parties protected? FYI what if there's a mortgage still on the home that's being wrapped?

thanks!!!

[Dennis Weber]

It will have to be in the contract who is responsible but in my case always the borrower. It can be escrowed for the lender or servicer to pay.  I make sure I'm listed as loss payee on insurance and will be notified if premium is not paid or terminated. It's easy to check if taxes are paid. Failure to pay is a default and bad times are a coming for borrower.