Wrap-around Mtg vs. Land Contract - Posted by Kathy


#1

Posted by Rob FL on November 11, 1998 at 21:00:31:

Recording the land contract would violate the due-on-sale clause. But as long as titleholder is still paying the mtg payment, taxes, and insurance then the bank will probably never know.


#2

Wrap-around Mtg vs. Land Contract - Posted by Kathy

Posted by Kathy on November 10, 1998 at 19:59:18:

If a seller has an existing non-assumable mortgage on a property, can they still sell it on Land Contract? The monthly payment would be applied first toward the mtg and the rest to the seller. They would still hold title to the property, still be legal owners as far as the bank was concerned, yet wouldn’t registering the Land Contract trigger a due-on-sale clause?

Carlton’s two techniques regarding wrap-around mtg. for assumable mtg., and Land Contract on a non-assumable. yet using a wrap-around mtg. is confusing.