Hello,
Someone has suggested that I might have the seller do a wraparound. What is this and how does it work? What are the advantages? Any replies are greatly appreciated. Thanks.
A wrap around is when the initial mortgage is left on the property , the property is sold to another and the buyer would pay a higher amount, each payment would be used by the seller to pay on the original mortgage, the balance of the payment each month would be a profit to the seller.
The buyer would not get the deed on this type of transaction until the underlying mortgage was paid off.
Why not buy the property "subject to" the existing first mortgage. You get on title, and pay off the mortgage. The seller has to be motivated for this transaction.
The buyer has to be motavated to do a wrap.
A wrap around is when the initial mortgage is left on the property , the property is sold to another and the buyer would pay a higher amount, each payment would be used by the seller to pay on the original mortgage, the balance of the payment each month would be a profit to the seller.
The buyer would not get the deed on this type of transaction until the underlying mortgage was paid off.
Why not buy the property "subject to" the existing first mortgage. You get on title, and pay off the mortgage. The seller has to be motivated for this transaction.
The buyer has to be motavated to do a wrap.