Posted by Kurt Schultz on October 17, 2006 at 15:43:02:
“All Inclusive Trust Deeds” are sometimes referred to as “Wrap-around Mortgages”.
Carrying a Note on a Note - Posted by staninguff
Posted by staninguff on October 03, 2006 at 15:22:55:
I have a house on which I currently have a mortgage, i.e. I am making monthly payments to the bank. Can I sell this house to another party and carry a note on him myself, i.e. I am his bank, and then use his payments to me to pay off my own note with my bank?
I have someone who wants to purchase my house, but also wants me to carry his note. That is the basis for my question.
Re: Carrying a Note on a Note - Posted by Chris in FL
Posted by Chris in FL on October 15, 2006 at 19:16:59:
I want to do some of the same in the future (primarily for lease-option tenants, with a proven payment history, who can not qualify for a mortgage). Isn’t this a wrap-around mortgage? I guess I will get with my RE atty. when the time comes, and see if I can do it or not, how to do it properly, and what are any associated risks. Anyone with info. on this, and when it can or can not be done, please let us know. Thanks, and best wishes!
Re: Carrying a Note on a Note - Posted by Kurt Schultz
Posted by Kurt Schultz on October 04, 2006 at 24:04:46:
Possibly, but not likely.
Get the note that you signed when you bought the house. Read through it looking for an Accelleration clause and/or a Due on Sale clause. Figure out if it says the you have to pay the note off in full if the ownership of the house it transferred.
If there is no such clause, you can probably resell the house to someone else with what is called an All-Inclusive Trust Deed.
If you have never done it before, it would be worth your while to pay a professional (such as a Real Estate Attorney) to draw up the correctpaperwork. Doing the paperwork wrong could cost you lots.