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I’m working on a wrap deal. Has anyone ever got an option and lease signed and notarized on top of the deed being transferred? For example, if the existing loan gets called due, i would quit claim deed the property back to the homeowners. However, my lease and option would come into affect that instant the deed is transferred back to the original homeowners. So, i still have control of the property. Thoughts? Or, am i just over worrying about the situation?
What is your exit strategy? You have a signed and notarized deed to you and until it’s recorded it is still the seller’s responsibility.
You are concerned about the bank calling the Note which seems unlikely if the payments and taxes are current or brought
current before a “lis pendens” is filed to commence a foreclosure. You want to pay the underlying mortgage with the new buyer’s
payments to you. Is this property the Homestead of the seller or investment property? How will you protect the seller’s interest
until title transfers to the end buyer? Is this a judicial foreclosure or a trust deed jurisdiction? A Land Trust may alleviate some
of these problems. Do you have knowledgeable investors in your area to confer with before proceeding? All the Best.Thanks for the advice. I will not get the option and lease for extra security. It will make it too confusing for everyone. I will just expect the bank not to call the loan due in the future.
Mac, I will rent the property out right away. I might do a HBS seller finance deal sometime in the future. It is not a homestead property. What happens if it was a homestead property and i was purchasing it with a wrap? The sellers will be protected with a wrap mortgage on public record. Wisconsin is a judicial foreclosure. All my investor friends in my area only do flip deals. No one thinks outside the box besides me that i have meet so far.
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