Seller financing assistance.

[Patrick Quiroz]

I need to better understand how to structure a deal for my investors with seller financing. Can one of my bigger pockets advisors clairify it for me. Is there a web site that breaks it down. Im so confused. Help me out!

Thank you,
Patrick

[Jon Holdman]

Seller financing is a broad topic. A wrap is a specific kind of seller financing. If the property has an existing mortgage, and its going to be sold without paying that mortgage off, a new mortgage can be created to "wrap" the existing one. The seller collects the payments on the new wrap mortgage and then makes the payments on the existing mortgage. As others have suggested, using an escrow service protects the buyer from the seller pocketing the payment and then letting the house foreclose.

Note that this, like many forms of seller financing where there is an existing mortgage, violates the due-on-sale clause in the existing mortgage and gives the lender the right to call the loan.

No idea what a Wally Wrap is. Probably the same old wrap technique dressed up in a bunch of mumbo jumbo to make you think you're learning some great secret.