Seller Finance and Wrap around mortgage

[La'Crystal Hicks]

My husband parents are downsizing and they're going to give us our first rental property. Now his parents still owe $85,000 on their home in Baltimore.  I've been listening to Chris Goff I learned about wrap around mortgage, but I'm still very confused about the entire thing. My credit is amazing, and our father isn't requiring us put a dp or anything. If anyone could explain the process to me I would great he's going to sign the contract by the end of the week

[Rick Pozos]

To do it the 100% legal way, you might let the bank know that he is giving you the property and you will keep making payments. They may want you to "qualify" for the loan.

You could go to an attorney and do what is called the wraparound mortgage. It just means that they are selling to you for the loan balance. They are still legally responsible for the loan, but you will be paying it. As long you are paying on time, there should not be any problems. 

I would not turn around and owner finance the property. Keep it as a rental.