Checklist for Acquisitions-Land contracts

When is Cancellation of existing hazard insurance done

The cancellation of existing hazard insurance is done by the home owner and they do it via a written notice where they mention as to which representative will be managing the property and that the policy which was taken with them will then be replaced with the new policy with the representatives.

When the cancellation of existing hazard insurance is done, if there are any refunds, the company will send it back to the home owner.

The existing hazard insurance policy is usually taken and it takes a total of a few weeks in order to be in effect. This is needed as a home owner and fire insurance. The coverage is for fire and there could be extended coverage as part of it as well, this extends to windstorms, damage due to hail, hurricanes or other such perils.

The insurance amount is equal to 100% of the value of the insurables as well or it could be for the unpaid balance of the amount of the mortgage.

As part of the flood insurance, based on the location of the property, flood insurance will also need to be taken if your property is near a flood hazard area.

There is also a general insurance and this normally unless specifically asked by the homeowner normally does not exceed to more than 1% of the face amount of the coverage of the dwelling. When there is hurricane or wind coverage, the maximum which can be deductible could be upto 2000 usd.

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CHECKLIST FOR ACQUISITIONS

PROPERTY ADDRESS ________________________________________________

CONTRACT PHASE

Earnest Money Contract Or Lease With Option To Purchase
Seller’s Disclosure
Lead Based Paint Addendum if built before 1978
Water District (MUD) Notice
Request for Mortgage Information Letter
General Authorization To Release Information
General Warranty Deed
Open Title
Order Mortgage Information Letter
Is An Affidavit Of Memorandum necessary? (Yes Or No)

CLOSING PHASE

Land Trust Agreement (Who is Beneficiary? – Seller or Us)
Assignment Of Beneficial Interest if necessary to _________________
Power Of Attorney if necessary
Assignment Of Escrows and Insurance Proceeds if necessary
Cancellation of Existing Insurance Letter
Order Insurance/Quotes
Review Existing Insurance and transfer to our agent if necessary
Immediately notify canceled Insurance Co. to send US the Refund Check (send copy of the Assignment of Escrow and Insurance)
Due On Sale Disclosure if necessary
Investor Note and Deed of Trust if necessary:         Investor ______________________    Amount ______________Term__________________  Interest Rate _____________
General Warranty Deed if necessary
Management Letter if not fully Assumed by us
Add New Mortgage Payments to Scheduled Transactions
Turn On Utilities
Letters Regarding Change Of Mgmt/Ownership To Homeowners Association, Appraisal District, Mortgage Co.
Make sure all documentation is in the Property Folder and put in file cabinet