wraparound mortgage


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Wraparound mortgage

A second mortgage that leaves the original mortgage in force. The wraparound mortgage is held by the lending institution as security for the total mortgage debt. The borrower makes payments on both loans to the wraparound lender, which in turn makes payments on the original senior mortgage.

Wraparound Mortgage

A second mortgage that a borrower takes out to guarantee payment on the original mortgage. In this situation, the borrower makes payments on both mortgages to the wraparound lender, which then makes payments on the original mortgage to the original lender.

wraparound mortgage

A largely extinct financing tool involving a seller leaving its first mortgage in place while selling the property to another and holding the financing. The new mortgage “wrapped around” the old mortgage, so that the buyer made payments to the seller, who then deducted enough to make payments to the original mortgage lender.The practice has been rendered obsolete by the widespread use of the due-on-sale clauses in mortgage loans, making the entire principal balance of the loan due when the property is sold,whether or not there has been a default.There are a few circumstances when a due-on-sale clause is not enforceable (see that entry for details), providing an opportunity for wraparound mortgages.

References in periodicals archive ?
NYSE:MPI,MPI PRA) announced Wednesday that its Related Party Transaction Committee and its Board of Directors have given final approval to the proposed acquisition by Milestone of 35 real estate properties (3 fee interests and 32 wraparound mortgage interests) from affiliates of Concord Assets Group, Inc.
8, the Committee and the board approved the proposed acquisition by Milestone of 35 real estate properties (three fee interests and 32 wraparound mortgage interests) from affiliates of Concord Assets Group Inc.
W Financial has closed a $5 million wraparound mortgage blanketing two luxury properties in Manhattan and Old Greenwich, Conn.
In 1980 my article, "Installment Sales of Mortgaged Real Estate and the Wraparound Mortgage," on the use of a wraparound mortgage in the sale of real estate on the installment basis, appeared in The Appraisal Journal.
Real Estate Financing includes: checklists for loan modifications; wraparound mortgage loans; subordinations; loans secured by condos, co-ops and time shares; sale-leasebacks; contingent interests; securitizations; deeds in lieu and consensual foreclosures; participations; installment sales; sales of mortgage loans; and much more.
The legal principal - which holds that a holder of a wraparound mortgage must meet its obligations to the underlying mortgagee or it loses the wraparound mortgage - has been made clear in the case of 51 Fifth Avenue v.
Included are checklists for loan modifications, wraparound mortgage loans, subordinations, loans secured by condos, co-ops and time shares, sale-leasebacks, contingent interests, securitizations, deeds in lieu and consensual foreclosures, participations, instalment sales, sales of mortgage loans, and many more.
the "Partnership") under an operating lease (the "Operating Lease"), and the land, buildings and such equipment provides security under a wraparound mortgage obligation (the "Wraparound Mortgage") of the Partnership to the Claridge.
In 1995, the company acquired wraparound mortgage and lease interests on 32 properties and 3 fee properties from affiliates of Concord Assets Group Inc.
8 million was a reserve against three wraparound mortgage notes secured by three shopping centers and one additional note.
NYSE:MPI/MPI PRA) announced Monday that at a Special Meeting of its Common Stockholders held Monday, the Common Stockholders approved the acquisition by Milestone of 35 real estate properties (3 fee interests and 32 wraparound mortgage interests) from affiliates of Concord Assets Group Inc.