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.

You must have at least a memorandum of contract recorded to cloud the title

Please get an attorney to protect your interests

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

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