All Forum Posts by: Account Closed

@Lynn McGeein not to worry about judgements against the seller in a wrap transaction as they no longer own the property so the property can't be attached... due on sale is there its the alienation clause.. does it happen it can but not often.. but I had 2 called on me over the years.

The danger in this transaction is squarely on the sellers credit. IE buyer defaults seller does not own the home takes seller a long time to get home back and if seller does not have money to pay payment sellers credit is trashed.

@Account Closed you can mitigate seller not paying the bank that's easy.

That's strange. According to SFGate site, if the seller does not pay the lender/bank, the bank can foreclosure the house which the buyer is currently living and even pay on time to the seller. As default is the biggest risk in a wrap around mortgage. Well to me, i plan if buyer default, property return back to me so i can find another buyer in which the 2nd lien interest will paid the seller mortgage. And in the meanwhile, i paid the seller mortgage until i find my new buyer. What do you think?

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The title kinda said it all. I want a banker who will tell me if a property is going to foreclosure and why that person should inform me.

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Originally posted by @Jon Holdman:

@Account Closed, no, the parties in a wrap mortgage are the seller, who's selling a property with an existing mortgage, and the buyer. Where do you fit into the deal at all?

Are you buying a property with a wrap mortgage and then re-selling it with a second wrap?

Are you buying subject to and selling with a wrap?

@Lynn McGeein's answer still applies. Use a servicer who accepts the payment from the end buyers, pays the underlying mortgage and distributes the remaining funds as you specify.

What servicers do you recommended?

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Hello BP, how to structure a wrap around mortgage where the seller can now forget the loan payment because it is set to auto, or/& can see if payment being made to the bank from the buyer but no access to take the money out?

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Hello BP, i know that in a subject-to the investor gain equity if the asset is greater than the debt of the seller mortgage and own the property. However in a wrap around mortgage from a subject-to transaction, the buyer own the property but have a promissory note created by the investor, is there any equity gain to the investor from the property/seller mortgage?

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Originally posted by @Lynn McGeein:

I did not end up doing this so others may have better advice, but I have looked into it before and apparently you set it up with an escrow company where buyer pays to them, they pay mortgage directly and send seller the balance, if any. I'd still have questions like what if seller declares bankruptcy or doesn't pay income taxes and IRS seizes the asset, or the mortgage calls the loan with the due on sale clause. If I wasn't putting anything down and it needed minimal repairs and the unit would cash-flow nicely, I still might proceed, but it wasn't going to work with the one we were looking at.

I think you forgot that in wrap mortgage the party are seller, investor/me & buyer.

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I worry and no idea what to do when said, in the near future the seller decided to use the payment i give to him from my buyer in a wrap mortgage translation for his personal gain instead of paying the bank. I know if my buyer default the property will be foreclosure and return back to me, and the same if i myself default and the property return back to the seller. But what if the seller decided he will no longer pay to the bank for his mortgage, what do i do?

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...Has any BP done this contingencies before?

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Currently i think i can find wrap mortgage leads from realtors, property manager, loan banker, homeowner, wholesale investor and default attorney. But what i'm not sure is how does these party going to profit from this kind of deal if i were to ask them for the leads?

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When doing a wrap mortgage, what kind of contingencies should be included, like when & how can i back out/ renegotiated in a deal, or should i included a time period to find buyer?

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All Forum Posts by: Account Closed

Account Closed has started 88 posts and replied 149 times.

Post: Wrap Mortgage Seller does not pay

Post: What banker will profit if foreclosure is prevented?

Post: Wrap Mortgage Seller does not pay

Post: Wrap Around Mortgage Seller can forget

Post: Does a wrap mortgage have any equity?

Post: Wrap Mortgage Seller does not pay

Post: Wrap Mortgage Seller does not pay

Post: Wrap Mortgage Contingencies

Post: Who and where to find Wrap Mortgage Leads

Post: Wrap Mortgage Contingencies