Posted by Eduardo (OR) on April 04, 2000 at 18:43:59:
Rik–
Re: your second question: About twenty years ago there was a period when money was tight, inflation was high, mortgage interest rates were 12% or higher. Lots of people did owner-carry transactions at around 10% because it was easier and cheaper than dealing with institutional lenders. Many of those mortgages did not have due-on-sale clauses in them. Now, we investors try to find owner-carry situations (for many good reasons), but on the whole there are considerably fewer than years ago because of the availability of lower rates and easy money. Thus, the opportunities for “wraps” on no-due-on-sale loans is less than it was. Nevertheless, in my opinion, owner-carry situations is what you look for. Hope this helps. --Eduardo
Questions About Wrap Mortgages & Second Mortgages - Posted by Rik Foote
Posted by Rik Foote on April 03, 2000 at 12:45:07:
I have two questions,
I am flipping houses in NJ and I?m coming across some opportunities to create some paper. I am flipping to consumers not investors. Many of these folks could use a loan for the down payment. Can anyone tell me how my buyers can get a mortgage that would allow them to borrow down payment money? Most of the mortgage folks I?ve talked to will only allow a ?gift?. How do you folks do it?
I?ve been reading quite a bit about Wrap mortgages and I haven?t been able to find any specific information about the specifics for doing this. For example I have not been able to find any mortgages that I can get that do not have a due on sale clause. Can anyone point me in the right direction on this?