Posted by Dave T on October 30, 2004 at 09:56:22:
In a wraparound mortgage, the deed (showing title transfer) is recorded and the new mortgage is recorded.
The problem you may be encountering is that the sale triggers any Due On Sale clause the seller’s mortgage note may have. Maybe this explains the settlement attornies’ reluctance, unless a wrap-around mortgage is prohibited by your state law.
Just thinking out loud
Wraparound Mortgage - Posted by Marc
Posted by Marc on October 25, 2004 at 10:50:35:
We have a seller that is willing to sale the property to us on a wraparound mortgage; there’s an existing 1st mortgage of $57K and the sale price is $77K. We are having a hard time finding a local attorney / title company in Tennessee to perform the closing; we’ve contacted five (5) local companies and they will not touch it. Our questions are: what documentation should an attorney / title company prepare in a wraparound mortgage transaction? what is the definition of a wraparound mortgage? what responsibilities does the buyer vs. seller have? what documentation will be filed on public record to conclude a wraparound mortgage transaction?
Any and all assistance is appreciated!
Thanks aagain,
Marc