Is this the same or different?

Question

What up BP Fam✊🏻! I need some overstanding on this topic, thank y'all kindly...

Is a mortgage wrap the same as seller financing, and if not, what are the differences between them? Also, if they are different, do I have the same amount of control in both situationships?

Michael L. · Answer

@Miranda Bilodeau, thank you kindly for the information! This was very helpful.

Michael L. · Answer

@Miranda Bilodeau, thank you for taking the time to give me some r/e game.

What is the difference between a mortgage wrap and a sub-to? And, does the buyer legally control the property while the seller only maintains control of the mortgage?

Miranda Bilodeau · Answer

Mortgage wraps are similar to "subject-to" deals, where the original mortgage stays in place and the buyer pays the seller the monthly rate. The seller continues paying the mortgage and then pockets the difference. However, if the buyer fails to make the payments, the seller could default on the loan and then the original mortgage lender could seize the property.

Seller-financing is simply the seller acting as the lender to the buyer. The property is the collateral and you can set the terms of the deal.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.