I love this site, this forum it’s very informative. I am a fairly new investor. I have a renter is interested purchase the property. I am thinking sell it to them use a warparound Mtg. I have a 5.5% fix VA vandee loan and equity approx. 50k, I like to do a warp with say 9%, that should make me pretty good return. but my question is if I warp my loan with my existing VA loan. does new buyer pay me the escrow (TAX and INS) then I turn around pay the VA Loan or otherwise? AS far as I know the VA require escrow acct no matter what. Any response is greatly appeciated. I am at Texas. Thanks guys.
Howdy IloveRE13:
It would be best for the buyer to pay you the escrows and then you send to VA. At the end of the year you can settle up and give them a refund if they over pay or have them give you more if there was a shortage, just like the lender will do with you. The lender also required you to set up an account with them and deposit a certain sum and you may want to do the same with your buyer.
Thanks Ted,
you are very helpful, one more question. Do I need to go to the RE attorney to do a warp or can I just go to title co and they will take care it for me.
thanks in advance
Howdy i loveRE13:
If you have an attorney they can close the deal and get a commission from the title company or the title company can usually handle the whole closing. Some title companies and even attorneys for that matter are picky and do not like sub2 deals or wraps. All title companies must sell a insurance policy or they will not close the deal at all.