Finding Bank/Credit Unions for Wraparound
I am wanting to find additional local banks, credit unions, etc that are ok with a wrap-around. I am doing owner financing deals in which an investor qualifies for a commercial loan to purchase the property with around 20% down. Then sells and owner finances the property to a buyer with a wraparound. I am trying to find additional institutions that understand and are ok with this type of transaction. Any suggestions? I am located in Texas.
Thanks so much!
You won't find a bank that will give you permission to transfer ownership and carry a wrap. As a matter of fact, if you read your mortgage, the bank can find a way to call your loan due at anytime. Every bank loan is a one minute loan. I think it is be better to wrap with a contract(contract for deed, land contract, bond for title). It doesn't transfer the deed until after the wrap loan is pay off. We have done this hundreds of times and never had an issue with the underlying bank. When a tenant buyer quits paying and disappears, you still own the property. If your contract was recorded then you will need to satisfy that lien at some point in the future. In the mean time, you can turn the house and place another tenant buyer.