Posted by daveh on May 19, 1999 at 06:38:25:
John,
I really like your idea of selling on wrap-around and pocketing the difference on the interest rate.
I found a nice fixer-upper home a couple blocks from where I live now. I’d like to sell my present home on a wrap. It’s worth around $215K with about $160K on the underlying mortgage. I know I can sell every two years TAX FREE (two of my favorite words when used together in the same sentence). I’d like to do a similar deal every two years if possible. The real estate market here in Detroit is incredibly strong right now. I have a couple general questions.
Does selling on a wrap like this have any tax implications if say I had to foreclose? Any suggestions on how to structure the note in this case? The current mortgage is a 5 year adjustable – should I refi to a 30 year fixed? I know I need to keep my own hazard policy in place so the current lender doesn’t find out title’s been changed.