Investor · Elkton, MD · Member since 2015 · 89 posts · 21 votes
All,
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?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
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.
Investor · Elkton, MD · Member since 2015 · 89 posts · 21 votes
11y
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.