Wrapping an Owner Financed Property

1 Reply

Trying to find some information from this great community of Bigger Pockets before I speak to my expensive lawyer.

I currently own a distressed property owner financed through a trust indenture (similar to a contract for deed except that the title is transferrable before the loan is paid off). Terms are written with a balloon payment in one year. There is a title company involved in which I make monthly payments through. 

Im thinking about wholesaling the property. I have an interested buyer. Wondering if I am able to wrap the owner financed trust indenture and finance the property without doing anything illegal? Will the title company allow for another loan to be written on the same property? Is this a deal I would have to do cash only under the table? 

Please let me know if any of this is confusing or I need to explain the current financials more.

Thank you!

@Nicholas Junker It isn't clear, but if a bank is involved at any step and they sell their loans to Fannie Mae or Freddie Mac, you are dealing with federal laws about disclosures. Even if the property is "free and clear" the Title Company will be doing a Title Search and the property has to have clear title for them to even be interested in being involved. I am unaware what a "trust indenture" is and it's ramifications, but I would most certainly get an attorney involved. I doubt anybody in their right mind on BP would give legal advice on this one. ;-)

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here