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Author Topic: Please contact me asap about wrap around you know more then me!!!!  (Read 1293 times)

Offline blondie777

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I have a motivated, very motivated seller...., who is selling a house for $50k. (Not sure if he is in forclosure.  The house was appraised at $61000 two years ago.  He said he would do a wrap around with $5k, down. 

I also have the buyer, I have 5k to put down, would like to turn around and sell immediately, but I don't want the buyer to know how much money I am making. 

I know its not a huge deal, but its my first.  I'm not what to do???

Offline BobbiOh

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Re: Please contact me asap about wrap around you know more then me!!!!
« Reply #1 on: March 23, 2007, 01:47:31 pm »
Well, first off....that appraisal from 2 years ago is useless. The house could be worth less than $55,000 depending on your area.

My understanding of a "wrap" (keeping mind that I don't do this) is that you would take over the mortgage from the seller as a "subject to:" contract. You would then sell the property to your buyer and you would either owner finance it or do another "subject to:" to the buyer. (It's a mortgage wrapped inside of another mortgage.) When you do a second "subject to:" they would know how much the payoff on the mortgage is since they would be paying it directly to the lender.

So, the question would be, how is the buyer paying for this property?
I'd rather be a lion for one day, than a sheep for my entire life.

 




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