Wrap-around mortgage

Any tips on owner financing using a wrap-around mortgage?

Thanks :slight_smile:

I think you’re confusing a popular food item at Taco Bell with Mortgages.

F.Y.I newdad - In a wraparound mortgage, you pay the seller the monthly payment on his or her existing mortgage, plus an additional payment to cover the balance of your purchase price for the home.

I know, I’m sorry…I saw the post and had to add my little dose of humor for the day :slight_smile:

that was funny… :smiley:

There should be (and will be) a lot more conversation on the “wrap”. It is the one way to get around the new Texas House Bill. Do a wrap with a three year balloon or something along those lines…

I am noob. But about the Texas thing.

Do you think it was because “everyone” sucked all the equity out of every deal right down to the marrow.

Meaning, that maybe this bill is attempting to equilize greed.

It seems that the process in general touches on legalized Loan Sharking. ???

You sound like a Democrat…

OK, the field is equal now. Instead of bailing homeowners out of foreclosure, we’ll let the banks foreclose and trash their credit, then I’ll pick the house up even cheaper.

As far a leasers, no option fee, but a big deposit. No sales price can be put on paper (according to my attorney), and no more rent credit. They rent until I decide to sell, if I like the price.

Great bill, they have essentially cut the consumers throat.

I have rented two houses since the bill came out… I explained to the consumer how the bill constricts my ability to put everything on paper, but tell them anytime we can agree on an independant appraisal, they may purchase the house, collect my large deposit, and go on about my business.

Sound level to you?

This might be the only good way to go now in Texas because of the Texas government.

At least we still have wholesale deals, rehabs, and foreclosures! :wink:

But be careful with doing the wraps unless you get some good tax advice first.

If you do more than a few of these in a given year, the IRS might consider you a “Dealer.”
Dealers can’t take installment sale treatment on the sales they make where they carry a note and mortgage. That means all the taxes are due in the year of the sale, even though you are not getting the money for several years!

This could put you in a severe cash flow bind, simply because of the tax consequences.

Whew… Thanks for the heads up. I think I’ve just about conceded the fact I’ll be a landlord…

Democrate - Hell no.

My observations is that I see a ton of ads for buying Texas real estate for pennies.

My be Texas has been farmed so much, so hard …

That some bleeding hearts thought what a shame, what crime.

So could this happen in other areas for the same reasons ?