Mortgage Assignment/Wrap

SELLER looking to walk away from the property and to get as much financial assistance and help as possible. Due to financially difficulties or avoiding foreclosure to bankruptcy, there are many reasons to walk away from a property.

How can we help?

Our specialties:

  • Clearing up judgments or outside liens.
  • Credit repair.
  • Debt removal or renegotiation.
  • Environmental or structural problems.
  • Foreclosure avoidance.
  • Houses in major disrepair.
  • Selling your property without realtor commissions.
  • Solving title issues.
  • Relocation assistance.

How does this work?

In a typical real estate transaction, the buyer purchases the home with a mortgage provided by a mortgage lender. The seller then uses the proceeds of the sale to pay off their existing mortgage on the home.

With a wrap-around mortgage, the seller keeps the existing mortgage on the home, offers seller financing to the buyer and wraps the buyer’s loan into the existing mortgage. In this situation, the seller takes on the role of the lender.

The buyer and seller agree to a down payment and loan amount, sign a promissory note that lays out the terms of the mortgage and then the title and deed pass on to the buyer. Though the seller continues to make payments on the original mortgage, they no longer own the home.

Mortgage Assignment vs Wrap

A mortgage assignment or wrap are possible outcomes for homeowners who are behind on their mortgage payments, own a home that is underwater, in a state of disrepair, need fast money for emergencies, retiring or for many more reasons. In either case, the owner is forced to part with the home, but the timeline and consequences are different.

How a mortgage assignment works

A property goes under contract subject-to the existing financing, and then assigning the contract to a buyer, such as REAITeam, in which the buyer would assume the original loan from the lender. Allowing the seller to walk away from the property and any of its underlying problems.

How a wrap works

A property goes under contract subject-to the existing financing, and then creating a new loan that wraps around the existing underlying loan. The new loan continues to pay the original loan through the buyer.

Why work with us?

Most homeowners have no idea what options are available to them beyond listing a house with a real estate agent or just trying to sell the house on their own, and hope for the best. We provide homeowners with a unique alternative to listing their house on their own or with a real estate agent. Our “out of the box” creative approach to real estate investing is a cut above the rest.