wrap around - Posted by jeannie

Posted by phil fernandez on February 11, 2001 at 19:02:42:

Whether it’s a wrap or a contract for deed, the buyer will be getting the tax benefits. If you want to keep the tax benefits and not have to foreclosure why not just stick with the lease option arrangement.

wrap around - Posted by jeannie

Posted by jeannie on February 06, 2001 at 16:36:40:

I am trying to structure a lease and have a few questions. The tenant is wanting to purchase the house by paying me like the mortgage co. I’ve set the monthly dollar amount, interest and length of loan and % that goes towards P & I (20% goes to me to pay taxes and Insurance). I understand that this is close to a wrap around mortgage. But, with wrap arounds I guess I have to file with the courthouse. I don’t like the idea of the sale being so FINAL. I have it worded so that if the lease is in default that they lose the monies paid toward the house and can be evicted as a tenant. If I file the paperwork, then I’d have to evict just like if I were the actual mortgage company and from what I understand that takes months and months. Does anyone have a better term other than wrap around? I like the idea of a wrap around instead of contract for deed since, I believe that if it’s contract for deed that they get to use the house for tax benefits not me. I hope this makes sense, this is my first time dealing with this topic and I’m trying to learn all I can, but have just been stuck on keeping my tax benefit and not having to file the paperwork. Who’s to day the tenant will really stay for 10 years! Thanks in advance. JE

Re: wrap around - Posted by Robert

Posted by Robert on February 11, 2001 at 23:18:46:

Do you still have a mortgage? If there is an underlying mortgage, you will not want to record ANYTHING! I would stick to a L/O if you dont know the consequences of doing a wrap. The tax benefits would go to the buyer in the case of he wrap or CFD.