Mortgage Wraps: The Basics
This document provides an overview of mortgage wraps, defined as the sale of a property without paying off the existing mortgage. It highlights the importance of understanding the due on sale clause, which allows lenders to demand full payment upon the sale if the mortgage isn't cleared.
The guide clarifies that mortgage wraps are legal in Texas, with specific legislative guidelines for proper closure. Key points include that the buyer becomes the legal owner, the necessity of closing with a law or title office, and the drafting of legal documents by an attorney. Additionally, it emphasizes sellers' rights to reclaim the property if buyers default on payments.
Download this guide to explore the essentials of executing mortgage wraps effectively.