What is a wraparound mortgage and can I use it to sell property?
If the property seller still owes money on the home, a wraparound mortgage is a way to finance the purchase without going through a lender. In a wraparound mortgage, the buyer pays the seller the monthly payment on his existing mortgage, plus an additional payment to cover the balance of the buyer’s purchase price for the home. Some lenders don’t allow their mortgages to be wrapped. In a Simultaneous Closing transaction, a wraparound can be created and sold for cash to a note buyer on closing. This would allow the underlying mortgage balance to be paid off.
