Wrap Around Mortgage!
I plan to a buy a house 10% below market conventional financing as an investment property then sell it to a buyer 10% above market throught a wrap around mortgage to collect the spread of interest payments. What happends if my buyer defaults and declares bankruptcy??? Thanks
Then the buyer would be protected under the terms of bankruptcy. You can stop trying to collect your money. When the courts square things away, then you will start receiving your payments. But if they fail the bankruptcy, their attorney has to dismiss the bankruptcy, and you would have to file foreclosure.
So would it be better to do a contract for deed instead of a wrap around mortgage? Thanks
I thought with a CFD you only go through eviction not foreclosure? Would you go with a Lease Option?
Depends on your state.
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