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(Disclaimer: Always seek advice regarding
questions for: Legal,
Tax, Accounting, Lending, Surveying, Inspecting, etc. from those other areas of
expertise. They may best answer questions regarding these
matters! Additionally, please allow that
"typos" / errors / changes may occur at this site and / or
other sites, herein referred / linked to... Information is presented only for your convenience. Any corrections
or suggestions are gladly
received! Thanks for visiting our site! Quigley Team, Realty World - John Horton &
Assoc.)
Waiver: The voluntary renunciation, abandonment, or surrender of some claim, right, or privilege.
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Warehousing: Mortgage bankers and other financial institutions make loans that are then periodically sold on the secondary market. After the loan is made but before it is sold - the loan is said to be in the lender’s warehouse.
Warranty Deed: This deed conveys the title to a property with a warranty of a clear marketable title.
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Wraparound Mortgage: This approach to getting a
mortgage is usually a BAD idea for the
following reasons: Most existing mortgages have a "Due on Sale" and an
"Acceleration Clause" in them... the original loan involved the lender and the
original mortgagee (period!). If the loan has these clauses there IS
trouble with this plan. The lender will find this scheme out soon enough.
They usually find out when the amended insurance policy
arrives with different names (the buyer) from the original owner.
They have the right to "call the loan!" Keep in mind they did
not "qualify," / approve of the new owner, NOR agree to
their possessing the property...!
Should this is not the case, it might work per the following:
A "Wrap" loan arrangement is
made whereby the existing loan is retained and a new loan is added to the
property. Example: The seller sells his/her property for $200,000. The buyer puts $80,000 down. The seller has an existing loan balance of $100,000 for a remaining period of 25 years at an interest rate of 6%. The seller then makes a wraparound mortgage to the buyer, (where the seller acts as a lender) for $120,000 at 8%. The seller has to continue making payments on his old loan.
The buyer has to pay the seller on the new loan. The buyer may at a later date refinance the property and close both loans.
Even when a "Wrap" is not disallowed, it can become
complicated...
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AUSTIN "STATS"