For those of you out there seller financing and using wraparounds, what tools, websites, or packets do you put together (ie background and credit checks) when screening potential buyers using seller financing or wraparounds. Less than 5 per year. I understand Dodd Frank and Safe Act require a licensed MLO for more than 5 seller financed homes within 12 months. In that case, they put the packet together anyways.
@Account Closed thanks for the feedback, im aware of the due on sale or acceleration clause. If this happened everytime I've told the lender we are wrapping a note around theirs, myself and many other investors would not have been successful thus far. In Texas it is the law that you have to disclose to the bank within 7 days a wraparound will be placed on their note. If they do accelerate, we refinance. I'm asking to see what other tools investors are using so I can make my process more efficient and minimize risk of sellers defaulting in 5 years.
@Justin Webb maybe try this post in the "lending" forum for better responses? There is a "creative" financing forum. Try it there and see what you receive.
@Andrew Postell great idea! I was contemplating whether or not to post in creative financing forum or Texas since our laws are a little more restrictive.
@Account Closed absolutely! Would be great to hear how things are going from you. Sounds like you found a good attorney as well. Shot you a colleague request.