Wrap Arounds & Title Seasoning in PA

3 Replies


I'm negotiating on a deal and the sellers attorney advised him that instead of going subject to for 1 year that we do a wraparound. So essentially this would involve us closing on the sale but having all of the documents held in escrow as opposed to being recorded publicly.  After the 1 year term I would refinance the property and cash out the seller.

My question is this.  After six or nine months will a conventional lender consider the title seasoned?  

Are there any other factors I need to consider with this scenario?

Thanks as always

Doesn't make sense.  Why do you say the documents wouldn't be recorded?  Was this the seller's attorney's idea?  I understand the unwillingness to do a sub2, I'd never sell that way either.  If you do the deal, title transfer and the mortgage need to be recorded, period.

Thanks guys.  

Wayne, you hit the nail on the head.  This was a reccomendation from an attorney friend who was looking over the contract as a favor.

I've never done a deal in the way he was suggesting so I reached out to BP, my Attorney, and my Title Co.

In the end it took a four way call with the Attorneys to get the seller to agree to the Sub2 deal. Everything is approved and paperwork is in the mail.

Deal saved!.. For now :)

Thanks as always