{"id":2168,"date":"2020-05-21T17:58:47","date_gmt":"2020-05-21T17:58:47","guid":{"rendered":"https:\/\/www.coastalcapital.com\/?p=2168"},"modified":"2021-12-17T21:49:24","modified_gmt":"2021-12-17T21:49:24","slug":"protect-your-mortgage-note-with-current-taxes-and-insurance","status":"publish","type":"post","link":"https:\/\/www.coastalcapital.com\/protect-your-mortgage-note-with-current-taxes-and-insurance\/","title":{"rendered":"Protect Your Mortgage Note With Current Taxes and Insurance"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2168\" class=\"elementor elementor-2168\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-5b41a5c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5b41a5c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f6a9b80\" data-id=\"f6a9b80\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9ca2db2 elementor-widget elementor-widget-heading\" data-id=\"9ca2db2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">A buyer failing to make payments on the mortgage note isn\u2019t your only worry.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e8e0de8 elementor-widget elementor-widget-text-editor\" data-id=\"e8e0de8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><p>Understandably, a buyer that stops making payments is a major concern when using owner financing. After all, a seller-financed note is a very valuable asset.<\/p><p>Unfortunately many sellers fail to protect their asset when it comes to another area\u2026verifying current property insurance and taxes.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b81f327 elementor-widget elementor-widget-alert\" data-id=\"b81f327\" data-element_type=\"widget\" data-widget_type=\"alert.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-alert elementor-alert-warning\" role=\"alert\">\n\t\t\t<span class=\"elementor-alert-title\"> <\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-alert-description\">Next to delinquent payments, the most common default by buyers is failure to keep the property insured and the real estate taxes current.\n\nIn fact many buyers will make their monthly note payments but fail to pay the insurance premium or real estate tax installment.<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e96933 elementor-widget elementor-widget-text-editor\" data-id=\"4e96933\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><p>Sadly, a lapse in insurance can be devastating to both the buyer and the seller. If the property burns down and is not insured, the seller will probably never see another payment from the buyer.<\/p><p>If a buyer fails to pay the real estate taxes for long enough the county can actually foreclose on the property. In most states, the lien for county taxes even takes priority over mortgage note holders, leaving an unsuspecting seller high and dry.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-693fa2e elementor-widget elementor-widget-heading\" data-id=\"693fa2e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">A buyer failing to make payments on the mortgage note isn\u2019t your only worry.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0f0fc80 elementor-widget elementor-widget-text-editor\" data-id=\"0f0fc80\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><p><strong>For insurance<\/strong>, require a copy of the declaration page showing the buyer as the insured owner and the seller as the insured mortgagee. Next call the insurance company to verify the policy is current and the annual premium has been paid. As the mortgagee listed on the policy you should receive notice of cancellation but it is safer to verify on or before the date premiums are due from the buyer.<\/p><p><strong>To verify taxes<\/strong> are current simply check the county records using the property address or tax parcel identification number. This can be done with a phone call, a visit to the county tax assessor, or online.<\/p><p>Most documents require the buyer to keep taxes and insurance current and failure to do so qualifies as default under the note. Sellers can demand the default is immediately cured or start foreclosure.<\/p><p>Sellers as lien holders may also elect to pay the delinquent amount to protect their interest and add back to the amount due, depending on the terms of the actual note, mortgage, deed of trust, or contract.<\/p><p>Some sellers prefer to avoid the headache by setting up reserves through a third party servicing agent. This way the buyer pays an amount equal to 1\/12th the annual amount for taxes and insurance establishing an escrow reserve account from which the bills can be paid.<\/p><p>A note buyer will also verify the taxes and insurance are current should the note holder ever decide to sell the mortgage note, trust deed, or contract.<\/p><p>Whatever the method, smart sellers know to protect their valuable asset by verifying the real estate taxes and hazard insurance are being kept current on the property!<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A buyer failing to make payments on the mortgage note isn\u2019t your only worry. Understandably, a buyer that stops making payments is a major concern when using owner financing. After all, a seller-financed note is a very valuable asset. Unfortunately many sellers fail to protect their asset when it comes to another area\u2026verifying current property [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2169,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.0.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Protect Your Mortgage Note With Current Taxes and Insurance - Coastal Capital<\/title>\n<link rel=\"canonical\" href=\"https:\/\/www.coastalcapital.com\/protect-your-mortgage-note-with-current-taxes-and-insurance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Protect Your Mortgage Note With Current Taxes and Insurance - Coastal Capital\" \/>\n<meta property=\"og:description\" content=\"A buyer failing to make payments on the mortgage note isn\u2019t your only worry. Understandably, a buyer that stops making payments is a major concern when using owner financing. After all, a seller-financed note is a very valuable asset. Unfortunately many sellers fail to protect their asset when it comes to another area\u2026verifying current property [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.coastalcapital.com\/protect-your-mortgage-note-with-current-taxes-and-insurance\/\" \/>\n<meta property=\"og:site_name\" content=\"Coastal Capital\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-21T17:58:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-17T21:49:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.coastalcapital.com\/wp-content\/uploads\/2020\/05\/Protect-your-note.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1286\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"2 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.coastalcapital.com\/#website\",\"url\":\"https:\/\/www.coastalcapital.com\/\",\"name\":\"Coastal Capital\",\"description\":\"Private Lender &amp; 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