Understanding The Advantages and Risks Of Wraparound Mortgages
These days real estate transactions have become more and more creative with financing solutions that often emerge to meet the diverse needs of buyers and sellers. One such alternative is the wraparound mortgage, a financial instrument that has gotten both praise and caution within the real estate community. Understanding its advantages and risks is crucial for anyone considering this option. What is a Wraparound Mortgage? A wraparound mortgage, also known as an all-inclusive mortgage or simply a "wrap," is a type of secondary financing arrangement where the seller assumes the existing mortgage and creates a new mortgage with terms that…