How do you do a wrap around mortage and have one insurance policy for buyer, seller and seller's lender?

[Rav Ram]

Does anyone know how to get one insurance policy that covers everybody at the get go? I can't seem to find this.

As the seller, I need to have the insurance for my original lender, but i want to cover the buyer, and myself in case of loss.

[Grant Kemp]

@Kyle Hipp is right, it's all about proper disclosures, and making sure every party understands all the associated risks before signing.

@Account Closed we've done over 10,000 wraps in my office over the past 25 years and only had the due on sale clause called 3 times. All of which were able to be resolved through deeding the property back to the seller then into a trust. Due to the Garn-St. Germain act, a property deeded into a trust doesn't violate DOS (although there are some caveats to that)

@Rav Ram the insurance is pretty easy, just make sure your original seller is listed as either the "insured" or "co-insured"/"also-insured" party. You'll need to have the original mortgagee (the bank) listed as the mortgagee, but put your company's name as the "secondary mortgagee" clause. If you need help please let me know, I'm here in DFW and I purchase/sell 5-15 of these a month for my own portfolio and I also process an additional 30+ each month for other investors around town.

@Jerry Puckett thanks for tagging me, I would've missed this thread!