Legal Question in Real Estate Law in Georgia

wraparound mortgages

I bought a property the owner is financing it, I wish to sell it utilizing a wraparound mortgage, is this legal

Asked on 9/26/08, 10:03 am

2 Answers from Attorneys

Charles W. Field Charles W. Field, Attorney at Law

Re: wraparound mortgages

You will have to get the cooperation of the seller. Assuming he has placed a mortgage on the property, that is a lien which will have to be removed.

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Answered on 9/26/08, 10:16 am

Robert Thompson J. Robert Thompson Attorney

Re: wraparound mortgages

It is legal, but it may give your seller the right to demand that his mortgage be paid off immediately--this is called a "due on sale clause", which is pretty standard. Have an attorney check the deed to secure debt and the note to see if such a clause is in the documents.

If it is, you can only do a wraparound safely with your seller's written consent.

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Answered on 9/26/08, 12:38 pm

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