Wrap Mortgage for first time into real estate?

[Micah McAlister]

Hello all!

I just learned about the Wrap around mortgage. Is it too good to be true? I have been wanting to get into a real estate property and live in an expensive area ($300-400k average home) but came across a couple pre-foreclosed homes and thought this would be a good way to get started? Would love to hear your thoughts and the downside to this option?

https://www.zillow.com/homes/1049-4th-St-W-Kalispell,-MT-599...

[Jay Hinrichs]

there are not a lot of downsides for you as the buyer when your do a proper wrap. the risk is on the seller who transfers title to a property that still has a loan in their name.

Now that all said  google  "All Inclusive Deed of Trust"  state of California.. this is the document that has been in use since at least the early 80s to properly wrap a mortgage. WE did little a thousand of these in the 80s .. we had a company called CA wrap even :)

get a copy read it and see how it gives protections. And then ask your title company or escrow company in MT if they have seen these or if they have their own version.