re: Wraparound Mortgages

quote:

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That's close to the same risk I have with a renter. Although I would love to sell it, I'm not desperate to do so. If the offer would have been a lot closer to my asking price, then I would have done it.

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Not really. With a tenant, if you've lived in the house for a reasonable period of time, you wouldn't risk triggering the due on sale clause (that is certainly in your mortgage docs if it's a conforming, owner occupied loan). And even if the tenant doesn't pay the rent, you'd know that immediately and they couldn't (directly) ruin your credit or take you into a default or foreclosure. And evicting a tenant would be a MUCH easier and less expensive process than foreclosing on this purchaser if he defaulted. The prospective purchaser sounds shrewd: he'll take the burden of making the payments to the bank himself. Yeah... he's a

Back in the day, I did more than a few wraps and double closings. And they are (or were) one way to increase the velocity of deals. But in this case, in this day & age, I think you made a wise decision in not pursuing this deal.