Could use a little help

[Lloyds of Lubbock]

I am a Life producer and no nothing about this stuff.
My stepson bought a house from his father in law.
His father in law provided the mortgage.
He says he cannot get homeowners because his father in law holds the loan.
Is this true?
Thanks

 

[Lloyds of Lubbock]

meant to say "know"

 

[fed up]

Tell the next insurance company that there is no mortgage, if in fact the house shows free and clear. Did Father in Law register the loan?

 

[Lloyds of Lubbock]

Sorry I will not encourage my stepson to lie on a app.
I have no idea if it is registered

 

[Policy Monkey]

I've written many HO3s with private lenders. It shouldn't be a problem. Who is telling your son this?

 

[Lloyds of Lubbock]

He has spoken to a few agents.
If you tell me what info you need I can gather it for you and then the two of you can get together.

 

[Allen Trent]

I am a Life producer and no nothing about this stuff.
My stepson bought a house from his father in law.
His father in law provided the mortgage.
He says he cannot get homeowners because his father in law holds the loan.
Is this true?
Thanks

No, that is not normally true. I assume the father in law had a land contract written up.

Are you sure your step son is not calling & saying he wants to insure a house that his father in law owns? That would likely be an issue.

Private lending through a private mortgage or land contract still would have a deed recorded with step son as buying on land contract from the current deed holder. So, the house is legally your step son's unless he defaults on the terms of the contract.

But if he is merely trying to insure something his father in law has sole deed to, the father in law likely would need a DP landlord policy & step son a renters policy because he has no legal document saying he has bought the deed on a payment plan

 

[Lloyds of Lubbock]

No he does own the house.
Thanks Alan, I will try to get more details

 

[marindependent]

@Lloyds of Lubbock you are super solid commentator on this forum. We all know who you are.

Try looking up the tax records, which in some states and locals are public record and see who is the owner of the property on file. If your stepson's name is not on the tax roles - something might be off about this. In lieu of that - you might only be able to confirm that a public transaction did go through on a given year.

Regardless of the outcome there is a solution to the problem depending on the insurer and the situation.

If his name is on the property, its not that big of an issue: Get the policy issued in your son's name and have the Family member listed on the mortgage company. [Note you may have to show proof the mortgage. And that mortgage should have a loan number.]

If its still it is in his father in laws name - than this is where creative insurance more or less comes into play. Many of the insurers are going to deal with this situation differently - there must be some sort of written contract with this. But since they are both "family members" it can be easier to get this through.

One of the challenges that I have run into with writing things like this is that many of the people involved do not understand how it all works nor have the correct information. Who owns the house?
Who is the Mortgage Company?
Who is billed for the property taxes?
Who lives on the property?

Its also slightly possible that its an even more complex situation such as: Rent to Own, or He owns the House but not the Land.

PM me if you need more help.

 

[adjusterjack]

No he does own the house.

Does he?

Ask him this question word for word:

"Did your father-in-law sign and record a deed conveying ownership of the property to you?"