AFS deal - who is paying the tax and insurance?

[antaynguy]

Hi,

In an AFS deal, there is potentially a wrap mortgage on top of an existing mortgage. The title remains on the seller`s name until the deal closes sometimes in the future.

My question is, in the meantime, who pays the insurance and who pay the taxes since the title is still in the seller`s name?

Thanks!

Antay

 

[Thomas Beyer]

QUOTE (antay @ Oct 29 2009, 03:27 PM) In an AFS deal, there is potentially a wrap mortgage on top of an existing mortgage. The title remains on the seller`s name until the deal closes sometimes in the future.

My question is, in the meantime, who pays the insurance and who pay the taxes since the title is still in the seller`s name?

Whatever is agreed on .. but usually it is YOU !!

 

[antaynguy]

QUOTE (thomasbeyer2000 @ Oct 29 2009, 08:30 PM) Whatever is agreed on .. but usually it is YOU !!

Thanks Thomas, would setting tipp payment with a shared bank account be a good way to pay for taxes and insurance? This way, the seller can see that it is being paid. Is there any other suggestions?

Thanks!

Antay