Posted by Liz(CA) on February 07, 2001 at 24:53:14:
Offer your price with a % of interest & term legnth.
Example-$100,000 @ 8% interests for 30 years giving you a monthly payment to the seller of 733.77. This new financing “wraps around” the existing financing creating a higher monthly payment to the seller who still has to pay on the underlying first mortgage. This is where the escrow company comes in to make sure the first payment is being paid. You pay them the $733.77 and they pay the first mortgage payment & send the balance to the seller. Their fees are usually based on the sales price (the higher it is the more money they charge) and they vary a lot from state to state so call a few tomorrow and ask exactly what they charge. Hope this helps!