Servicing a note based on a contract for deed

[Pat Jackson]

I have a local portfolio lender that is receptive to allowing wrap mortgages, allowing me to do seller financing.  I would want these sold with a contract for deed.  I am not exactly sure how the insurance and tax payments would work.

I realize with a deed of trust it's really easy to have any number of third party note servicers hold escrow, and ensure insurance and taxes are paid.  Can it work the same way with a contract for deed?  If the house burns down and loans need paid off, can both I and the initial loaning bank be mortgagees?