What is the Wholesaler's Liability When Selling On a Mortgage Wrap?

[Burt L.]

I am wholesaling a property in foreclosure that has a short time until the Public Trustee sale.

I have contracted the property to take over the payments, but that the seller is not released from liability on the loan. A loan servicing company will be used to forward the payments on the mortgage wrap, and a deed back to the seller will be held in escrow should the buyer not make the payments. If my buyer does not perform, I'm trying to determine my liability. The buyer will have over 40K down to cure the foreclosure, etc. so it seems they are also invested in performing on the loan. If it were a Sub-2 without a significant financial commitment by the buyer, I think it would be more risky.

I will be assigning and not double-closing, andI will avoid being in the chain of title as well. Am I setting myself up for a future liability on these facts?