Wraparound Mortgage Rider | USA
Designate a mortgage as a wraparound mortgage by attaching this USA Wraparound Mortgage Rider to the mortgage form.
- The Rider clarifies that the new mortgage is subordinate to the original first mortgage on the property.
- A wraparound mortgage is often used as a form of seller financing. It enables buyers who may not qualify for a conventional mortgage to purchase a home at a higher interest rate but with a smaller downpayment.
- The mortgagor (buyer) will make payments under the new mortgage to the mortgagee (seller), who will continue to pay the original mortgage.
- The seller has the same rights under a wraparound mortgage that a mortgage lender has under a conventional mortgage, including the right to foreclose.
- This Rider can be used in any State in which wraparound mortgages are allowed by law.
- This is a template legal form which can be customized to fit your circumstances.
Last Updated: 25-May-2021