Posted by jeff on September 09, 2003 at 14:38:16:
I am no expert! but if the wraparound does not trigger the due on sale clause (which I think it does), you could run into big title problems if the owner refuses to release the property. Legally the owner owns the property and a lean is placed on the title by a lender. If the owner sells to you by wraparound, the lender has no legal contract with the buyer. If the lender claims dueonsale clause, the buyer may be hung out to dry if the owner refuses to honor the sale. Be carefull have a real estate lawyer review all the paper work. Make sure the lender is aware of the terms of the deal. Any mistake could be costly.