Seller accepts wraparound mort. but what about bank's underlying mortg.? - Posted by Scott Anderson

Posted by Bud Branstetter on April 19, 1999 at 09:52:51:

Find a different person to close your transaction. I’m not sure why you are using an “escrow” person, title insurance or collection.

The deal can be done with a L/O and performance mortgage if you are inputing money. It could also be done as a contract of sale. You don’ say if the loan was puchase money, home equity or both. If you are renting and not purchasing yet you do not want a wraparound. They are not illegal, just obvious when there is an underlying loan with a due on sale clause.

Seller accepts wraparound mort. but what about bank’s underlying mortg.? - Posted by Scott Anderson

Posted by Scott Anderson on April 19, 1999 at 02:07:20:

I called an escrow company for information on doing the paperwork. She explained that they must notify the bank the seller has a equity loan with at closing, thus, we(buyers) will probably have to follow a due on sale clause. What other option do we have? Seller is willing to be cashed out in one year when we refinance. Do the seller and us go down to the county and record it ourselves? Is wrap around deals legal? We will be paying the seller the amount of her underlying mortgage per month in rent until we refinance.
Thanks.