Hi all, I'm looking for an attorney/legal expert for help with creating and structuring a seller finance deal in the bay area (east bay). More specifically, I am trying to sell my oakland property to the current tenants and need help understanding how a wraparound works, since i have a current mortgage on the property. Does anyone have any recommendations? Thanks!
@CaNguyen welcome to BP. You would probably get more traction speaking with a knowledgeable Realtor/Investor to answer your specific questions. I have done deals like this before and used an AITD (All inclusive Trust Deed) or just a simple Land Trust to accomplish your goals. There is a lot more planning to protect all side of the transaction and keep away the bank's "Due on Sale" clause from triggering, but it can be done.
Thanks for the response @Joe Homs . Did you use an attorney for any of your deals? Having no experience with legal contracts for these types of deals, I figured it may be safer to solicit help from a real estate attorney.
@CaNguyen I've been doing this for over 40 years and the only time I need an attorney is when I need to sue someone which is very rare. I have all the documents that I need which were provided by attorney's and experts in the field from years ago. If hiring an attorney makes you more comfortable then do so.
If your going to accomplish your goals you will need an escrow company that knows how to do an AITD. You will probably need a management company (neutral third party) to manage the payments received from the buyer. Then they pay off the lender, property taxes, insurance, HOA and then finally you. Remember the loan will remain in your name until the property is sold or refinanced by the buyer.
If you are using a land contract then its much easier as you will not need an escrow company, but you will still need that neutral third party.
Hope this helps.
@Joe Homs That is very helpful, thanks again!