Wraparounds are one of the most flexible seller financing tools available. Here is how they work.
A wraparound mortgage allows a seller to keep their existing loan in place while offering new financing to the buyer that 'wraps' around it. The buyer makes a single payment to the seller, who continues paying the original lender.
When structured correctly, wraparounds can be a win-win: sellers earn a spread on the rate differential, and buyers get access to financing that would otherwise be unavailable. This guide walks through the mechanics, the legal considerations, and the scenarios where it makes the most sense.
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