Pros and cons of mortgage wrap
Hello all,
I recently came across a nice home that I initially planned on wholesaling. While viewing the home, I decided that I wanted to keep it for myself to serve as my primary residence for a few years. It's value around 145k and the seller is looking for their payoff of 104k. The seller is a tired landlord and merely wants to rid herself of the responsibility of the home. I offered to take over her mortgage and she agreed. I really don't want to actually "assume" the loan and go through the banks approval process, so I offered to Purchase the home subject-to. We're basically going to quit claim the home into my name and I'll make the mortgage payments directly so I know they're being paid. What are the risks involved on both sides (seller/buyer) with such a deal as I am not experienced with this strategy?
Thank you!
Memphis. Tennessee. Wholesale. Rentals.