Wholesaling a Foreclosure - Do I Care If Its a Sub-2 Or a Wrap?

[Burt L.]

I am in the process of wholesaling a foreclosure, and the numbers won't work if the buyer has to get a new loan. As the seller doesn't have much to lose, do I care if I wholesale it with a wrap vs. a Sub-2 ?

I will be out of the picture afterwards, but don't want the seller to get burned by a buyer who doesn't make the payments. However, the buyer will have to put down $40K to cure the foreclosure, etc. and will be invested in the outcome. I haven't done a wrap before, and the time is compressed now. I don't know if I have an obligation to the seller at this point. If a Sub-2 is done, of course I need to disclose this. I can also specify a loan servicing company for the payments.

I'm leaning towards the Sub-2 with a loan servicing contract. I also presume I would want to assign this, instead of double closing, to avoid being in the chain of title, as I don't know what will happen afterwards.

What might people more experienced than me think of this?