Posted by OJ on May 15, 2000 at 15:44:37:
Actually,
I do have courses LeGrand’s & Sheet’s material. But if you were to ask me to define both terms…I would have trouble explaining …PLAIN & SIMPLY
oj
can anyone define what a… - Posted by OJ
Posted by OJ on May 15, 2000 at 14:50:55:
wrap around mortgage is
& buying a home “subject to”
Sorry for the newbie questions
thanx,
OJ
Re: can anyone define what a… - Posted by Jim IL
Posted by Jim IL on May 15, 2000 at 16:03:03:
OJ,
Alright, here goes the “plain and simple” explanation as best as I can.
A Wrap Around Mortgage: This is when you, the seller, have a mortgage loan on the property already. You sell to someone else, and carry the financing. The mortgage note between you and your buyer is for more money than is owed on the underlying loan, and the interst rate is usually higher. In other words, you are creating new financing while leaving the old financing in place, thus “Wrapping around” the old note.
This is good when you have an older underlying loan because the principal is paid off faster. Plus, you can get the spread between the interest rates on the two loans. The Buyer pays you monthly, and you pay the lender for the underlying loan, and keep any difference if there is any.
Buying Subject to: This simply means you are buying the home “Subject to” the existing financing. The title to the home goes into your name, or some entity that you create, and the loan stays in the sellers name. This is what it means when many here refer to “Getting the deed”.
The seller deeds the home to you, (or some entity you create, like a trust,), the loan stays in the sellers name, and you make the payments on it.
This is frankly my favorite way to buy a home, and I have been fortunate enough to doa few so far.
For more info on how best to do a “Subject to” deal, take a look at the “How to” articles here, as goto www.legalwiz.com
Take a look at the articles about “Beating the Due On Sale Clause.”
Hope that helps a bit,
Jim IL
P.S. If you have Legrand, as you said in the reply below, his course module covers this, and even provides you with forms for doing so. If you missed it, or did not understand it, then read it again until you do. This is a rather tricky way to buy RE, so be careful, and make sure you do it right.
Once you do a few, they become easier.
It’ simple, but… - Posted by Abraham
Posted by Abraham on May 15, 2000 at 15:07:35:
If you are asking these types of questions, I would highly suggest that you invest in some course material. These are elementary topics and asking such questions tells me that you should not attempt to do any kind of deals until further educated!! Please don’t hurt yourself. Read some material on this site (How To, Success Stories, etc.) but don’t go out and try to deal without some basic knowledge!
Study Up OJ.
Abraham
Re: can anyone define what a… - Posted by OJ
Posted by OJ on May 15, 2000 at 19:22:31:
Thanks a lot for your post
OJ or Olivia Jean “aka” hot-one.
you got me last time about posting anonymous name!
thanx again
OJ