Posted by Bill Gatten on January 24, 1999 at 13:15:13:
By the way, what DO they call an AITD in a mortgage state?
And I think I misspoke in my last post on this issue: it’s an AITD in a Trust Deed state, not a mortgage state (solly).
Coffeebrication… it’s everything this time of day on Sunday.
Bill
wraparound mortgages - Posted by Joe
Posted by Joe on January 24, 1999 at 10:09:14:
CAN ANYONE EXPLAIN THE MECHANICS OF A NO MONEY DOWN WRAPAROUND MORTGAGE? ALSO, WHERE CAN I GET A SAMPLE CONTRACT FOR THIS?
Re: wraparound mortgages - Posted by Bronchick
Posted by Bronchick on January 25, 1999 at 10:41:46:
Here’s an excerpt from my new home study course, “How to Create a Real Estate Cash Cow” available soon . . .
"Down Payment. The buyer wants to pay as little as possible for a down payment. If the seller is asking for cash because he fears non-performance by the buyer, then the buyer can request that the down payment be applied against the existing loan balance. In some cases, the loan balance may be more than the property is worth. In such a case, it would not be unreasonable to expect the seller to pay the buyer all or part of the difference in cash.
Term. The buyer want no cap or balloon date. At best, the buyer would benefit from matching the term of the payments to the existing loan balance (e.g., 26.5 years).
The bottom line is that the buyer wants to get in cheap, with low down and favorable payments. Unless there is significant equity, the buyer’s best deal would be a wrap that “mirrors” the underlying payments, interest rate and balance of term of the underlying loan."