A WRAPAROUND LOAN PLUS

Maybe time is an issue and they want things to go faster.ДЄlso remember, Sam has an existing mortgage of $40,000. Maybe it is not a good market for people like Bill to get credit. Maybe Sam was having a hard time getting the price he wants. Sam is giving a loan of $200,000, and they agree to an 8% interest rate. Sam would convey title of the home to Bill and extend a mortgage.

A WRAPAROUND LOAN PLUS

How about you make payments to me based on the two hundred thousand plus some interest, much like you would have done with the bank.'

Sam can say, 'I like you, and I want to sell my house. Sam would take that money and pay off his mortgage.Д«ut let's say that there is some issue preventing Bill from getting the money from the bank. So, Bill says, 'I need $200,000', so he can buy this house from Sam. So normally what would happen is Bill would go to the bank and say 'I need $200,000'. $200,000 is what you want to be the sale price to be. Sam has an existing mortgage that has $40,000 left on it. The two of them agree that the house is worth $200,000. Let's say that Buyer Bill wants to buy a home from Seller Sam. In the spirit of keeping things simple, I am not going to include things like down payments, commissions, and other expenses involved in a typical transaction.

A wraparound mortgage is a type of seller financing whereby the buyer executes an installment note which 'wraps around' an existing mortgage still held by the seller.

A wraparound loan