Subject-To and Wraparound Closings in Texas
Two creative ways to close a Texas real estate deal without a traditional loan — handled start to finish by a Texas real estate law firm. Subject to Closings: flat $1,500. Wraparound Closings: flat $2,000.
What Subject-To Means
A subject-to transaction means that a buyer is purchasing a home subject-to all liens, debts and judgements. It is a creative finance technique where a buyer can take title to the property without obtaining a loan in the traditional manner.
In this transaction, the seller of the property maintains the financing: the seller is not paying off the existing mortgage, and the buyer is taking over the payments. The unpaid balance of the existing mortgage is then calculated as part of the buyer’s purchase price.
Typically, homeowners who are behind on payments or are already in foreclosure are motivated sellers and good candidates for subject-to purchases.
What a Wraparound Is
A wraparound mortgage is completed by doing a deed of trust in Texas. This document secures the buyer’s promise to pay a mortgage note. A homeowner with a mortgage can sell to someone who promises to pay that mortgage.
Wraparounds have become popular because credit score, income, employment history, and bankruptcies can make it hard for new buyers to get a traditional loan. A wraparound solves problems for the buyer and the seller alike.
The documents are signed and notarized because they will be recorded in the county’s property records to be valid.
Two Flat-Fee Closings
Published flat fees from our Prices page — quoted up front, no surprises.
Subject to Closing
$1,500Everything the firm handles in your subject-to closing:
- Deed
- Limited Power of Attorney
- 3-page Disclosure
- Title and tax search to look for problems
Wraparound Closing
$2,000Everything the firm handles in your wraparound closing:
- Deed
- Deed of Trust (Mortgage)
- Title & tax search to look for problems
- Note (I.O.U)
- Settlement Statement & Escrow service setup
- A LOT of disclosures
Real estate broker services extra.
How It Works
Four steps to a clean creative-finance closing.
Tell us about the deal
Call (210) 468-1831 and tell us whether you are buying or selling — and whether it is a subject-to or a wraparound.
We check title and taxes
We run a title and tax search to look for problems before anything is signed.
We prepare the documents
Deed, deed of trust, note, disclosures, powers of attorney — everything your closing needs, prepared by a Texas real estate attorney.
Sign, notarize, and close
Documents are signed and notarized, then recorded in the county’s property records. We close at our office on Woodstone and IH-10.
Frequently Asked Questions
Answers from our Texas real estate practice.
What does "subject-to" mean?
A subject-to transaction means that a buyer is purchasing a home subject-to all liens, debts and judgements. The buyer takes title to the property without obtaining a loan in the traditional manner, while the seller maintains the existing financing.
What does assumption mean?
In a subject-to deal, the buyer promises to pay an existing debt: the buyer takes title to the property and assumes the seller’s mortgage payments.
Is a wraparound mortgage legal in Texas?
Yes. A wraparound is when a home is sold with an existing lien still on it. The buyer uses a wrap lender to take out a second, higher-interest loan that "wraps" around the existing one.
What happens if the buyer stops paying on a wraparound?
If the buyer fails to pay either the first mortgage (to the lender) or the second mortgage (to you), then you would be able to foreclose.
Ready to Close Your Subject-To or Wraparound Deal?
Call Maas Law Firm — flat fees quoted up front, closings done right.
(210) 468-1831