Conventional mortgages<\/u><\/a> are non-assumable, hence it will not allow a wrap-around loan to go through.<\/b><\/p>Both the buyer and the seller must agree to the wraparound mortgage, and the seller must get approval from the current lender holding the primary mortgage before starting the wrap-around loan process.\u00a0<\/b><\/p>
Once the terms of the loan are set, the seller has an option to transfer the title of the property to the buyer immediately or after the loan is paid off.\u00a0<\/b><\/p>
The buyer would be the owner of the property only once the title is transferred by the seller.\u00a0<\/b><\/p>
Wraparound mortgages are in a lower or second position on the home. So in case if buyer defaults on the mortgage and the property are foreclosed, the lender will receive the proceedings first and then the seller.\u00a0<\/b><\/p>
This means the lender will first recoup its money before the seller could recover his loss.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t