Wrap Around Mortgage Upstate NY

[Zach Cicero]

Hi Friends,

One of my connections is selling a duplex in Rochester, NY for $85k. I proposed seller financing because my cash is tied up in another mortgage I just obtained. He said that wouldn’t work because he has a mortgage for $40k on the property. I’m thinking about proposing a wrap around financing arrangement. Does anyone in NYS have any experience with a wrap around? Can you confirm it’s legal? 

I’ve also never done a seller financing arrangement but if he is willing to do the wrap around, I’m thinking about proposing propose 10% down, 30 year amort, 5 year balloon, 7% rate. Are these fair terms? Does any have a recent seller financing transaction they can share the terms with?

Thanks!

Zach