Closing a Subject to Deal right now, Need Help!

[Jeremy Silva]

Hello everyone!

Any input would be greatly appreciated, especially if you have sub2 experience.

Heres the Scenario.

My partner wanted a Personal property for himself, called on a FSBO and the conversation went well.

After a meeting and few phone conversations the purchase agreement was made.

With the purchase Agreement there is a Subject To addendum stating that the buyer will be taking over the payments.

Now, here is where I need some help.

The Title company is unsure of how to close the deal.

I want to make sure that the seller will be able to foreclose if the underlying loan is not paid by the buyer.

To do this, I was going to use a Special Warranty deed with a vendor's lien secured by a deed of trust.

My questions:

1. The Title company wants to create a wrap around and have my attorney do this... doesn't make sense to me.

2. How do I close and still ensure that the seller will have the right to foreclose if the loan is not paid.

(we want to make sure because we will be closing MAPS deals in the future where we will not be the buyer)

3. Could I record the Vendors Lien and Record a deed of trust that mirrors the original while changing the beneficiary to the seller?

I'm confused!!! HELP ME

(The loan is an Option ARM and I have the original Note with all the details)

Thanks.

[Jon Holdman]

You might try Canyon Title. Not dealt with them but I understand they can do more creative deals.

This should be just an ordinary closing. There will be additional disclosure documents warning everyone involved that the loan stays on the seller's credit, etc. And the title policy and deed will show an exception for the existing loan.

If you want the seller to have a security interest and the ability to foreclose, then a wrap (or AITD - All Inclusive Trust Deed) would be more appropriate than a subject to. You could do a mirror wrap where the terms of the new wrap mortgage exactly mirror the terms of the underlying mortgage.