Real Estate Attorney – Located in San Antonio Texas
JD GARZA
JD GARZA
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Victor is a mover & shaker in the Real Estate Investment business...I recommend him anytime.
Dan Diaz
Dan Diaz
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Excellent atty. Highly recommendable. Quick & knowledgable.
Larry Offutt
Larry Offutt
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I have used the firm in both purchasing & sell transactions. each time was a pleasure.

Wraparound Closings

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. This is a bit of a belt-and-suspenders approach, but too much protection is far better than too little. This type of closing secures the buyer’s promise to pay your mortgage, even if the buyer is paying your lender directly. 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. This document needs to be signed and notarized because it will be recorded in the county’s property records to be valid. Includes:
  • 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
Price: $1,500 (Setup an appointment here)

In this video:

  • What is a wraparound mortgage? 
  • How long does a wraparound mortgage take? 
  • What are some of the benefits of doing a wraparound? 

Table of Contents

Why are Wraparound Closings so popular?

one dollar billsWraparound closings are becoming more and more popular for many reasons. Due to COVID in 2020, home lenders have become stricter yet offer low interest rates. A review of Credit Karma members shows that the average score for first-time homebuyers in the U.S. is 684.- Paris Ward – Credit Karma

Credit score, income, employment history, and other factors like bankruptcies make it hard for new home buyers to purchase their first home. The benefit of a wraparound mortgage solves these problems for the buyer and the seller.

Some of the benefits of doing a Wraparound Closing

plant growing in changeIf structured properly, the seller can make a profit on a large down payment and generate monthly cash flow. If the seller refinances, then they can get money on the back-end when the new owner refinances. Sellers can negotiate cash down payment, terms, loan amount, interest, and refinance requirements.

The closing is similar to the regular home purchase transaction, but you can cut costs of commissions and other costs by closing at an attorney’s office. Generally, people close with a title company and real estate agents, but that’s not required. The expenses of these closings are average. An Added benefit is that these types of transactions can minimize the extra costs by the way you structure the agreement.

FAQ

Yes, a wraparound mortgage is legal in Texas. 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.

The original borrower for the loan is still responsible for the mortgage, we recommend using an escrow or loan servicing company to ensure payments coming directly from the new buyer are accounted for and paid correctly. If the new buyer fails to pay, the original owner is still responsible for that mortgage.

The new purchaser makes monthly payments to the seller, who is then responsible for making the payments to the underlying mortgage(s).

There are a number of different ways to negotiate a wraparound transaction. Here are some examples of terms to negotiate: You can negotiate the price of the property, the amount of the down payment, the term, the balloon, the interest rate, and the monthly payments.

No, there are no credit restrictions for a wraparound mortgage. You can sell to your sister and have no credit check at all. It is recommended to thoroughly check credit (We have a service we recommend) because they can default on the loan and you might have to foreclose. Please inquire for details. A non-traditional mortgage is especially helpful if you’re self-employed or have variable cash flows, where you can’t qualify for a traditional loan.

View Other Types of Investor Related Real Estate Transactions

Maas Law Firm, Texas Real Estate Attorney

We are a San Antonio Real Estate Law firm that offers fixed fee rates for a variety of legal transaction services, including Owner Finance & Wraparound Closings, Foreclosures, Deeds & Releases, Real Estate Contracts, Title Issues & Judgments, Wills & Estates, Probate & Administration, & LLC Formations. If you need help assessing your case give our office a call. 

Victor has been doing real estate transactions as a lawyer since 2002 & as an investor himself since 2003. There are a lot of nuances with real estate & we hope that if you have any questions to contact us during regular business hours. Along with being a Real Estate Attorney, Victor is also a Real Estate Broker, making his expertise long standing & efficient. 

Michael Eronini
Michael Eronini
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Victor has closed a bunch transactions for us. Very knowledgeable & efficient!
Mandy Molina
Mandy Molina
Read More
Mr. Maas is extremely professional & makes the process quick & painless. Thank you for helping me today. You're a blessing.
Alfredo Ibarra
Alfredo Ibarra
Read More
This lawyer knows his stuff & doesn’t back down from a fight!
JD GARZA
JD GARZA
Read More
Victor is a mover & shaker in the Real Estate Investment business...I recommend him anytime.
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Maas Law Firm, Texas Real Estate Attorney

We are a San Antonio Real Estate Law firm that offers fixed fee rates for a variety of legal transaction services, including Owner Finance & Wraparound Closings, Foreclosures, Deeds & Releases, Real Estate Contracts, Title Issues & Judgments, Wills & Estates, Probate & Administration, & LLC Formations. If you need help assessing your case give our office a call.  Victor has been doing real estate transactions as a lawyer since 2002 & as an investor himself since 2003. There are a lot of nuances with real estate & we hope that if you have any questions to contact us during regular business hours. Along with being a Real Estate Attorney, Victor is also a Real Estate Broker, making his expertise long standing & efficient. 
Michael Eronini
Michael Eronini
Read More
Victor has closed a bunch transactions for us. Very knowledgeable & efficient!
Mandy Molina
Mandy Molina
Read More
Mr. Maas is extremely professional & makes the process quick & painless. Thank you for helping me today. You're a blessing.
Alfredo Ibarra
Alfredo Ibarra
Read More
This lawyer knows his stuff & doesn’t back down from a fight!
JD GARZA
JD GARZA
Read More
Victor is a mover & shaker in the Real Estate Investment business...I recommend him anytime.
Previous
Next

Maas Law Firm, Texas Real Estate Attorney

We are a San Antonio Real Estate Law firm that offers fixed fee rates for a variety of legal transaction services, including Owner Finance & Wraparound Closings, Foreclosures, Deeds & Releases, Real Estate Contracts, Title Issues & Judgments, Wills & Estates, Probate & Administration, & LLC Formations. If you need help assessing your case give our office a call. 

Victor has been doing real estate transactions as a lawyer since 2002 & as an investor himself since 2003. There are a lot of nuances with real estate & we hope that if you have any questions to contact us during regular business hours. Along with being a Real Estate Attorney, Victor is also a Real Estate Broker, making his expertise long standing & efficient. 

Contact

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Directions

Located on IH-10 Between Huebner & De Zavala off Woodstone: 11815 W IH-10 #107, San Antonio, TX 78230

Directions

Located on IH-10 Between Huebner & De Zavala off Woodstone: 11815 W IH-10 #107, San Antonio, TX 78230

Contact

Fields marked with an * are required

Directions

Located on IH-10 Between Huebner & De Zavala off Woodstone: 11815 W IH-10 #107, San Antonio, TX 78230

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