"Subject to" - Changing insurance policy to access loan records

[Richard Montoya]

Listened to BP episode 065 with Wendell De Guzman

In his strategy for "subject to", he mentions that in order to access loan information, without triggering the "loan due" clause, he has the current owner, add him (Mr. De Guzman) to the insurance policy. This new policy is then submitted to the bank for record, with a memo from the owner indicating that Mr. De Guzman is NOW a vested party of the property.

Question... Does this really work? Now that you've added yourself to the insurance policy, can you actually access someone else financial records (loan amount balance) without setting off alarms?

Thanks,

Richard M.

Keywords:

sub-2, sub2, sub 2, subject 2, sub-to, sub to, podcast, wendell, deguzman, de guzman, 065, creative,

[Bill Gulley]

No, being named as an additional insured or co-insured does not give you authorized access to loan information.

That's not to say some clerk in the insurance department may not screw up making assumptions and not checking the loan file and give someone information.

The only way to obtain loan information where you are not a party to the loan is with an authorization to release information given by the borrower.

This falls under security issues for a lender, examiners may probe operations by calling or "pretexting" to see if they can breach security of operations testing employees, I did. Employee education is then in order if they mess up.

You do realize that Josh and Brandon have both cautioned members on BP to do their due diligence as to any information obtained on BP, just because someone advocates some method of doing something doesn't mean it is correct or even lawful. Attempting to obtain unauthorized confidential bank information can be.......you guessed it, a violation of law! :)