Wraparound Mortgage Security Agreement | USA
Prepare a Wraparound Mortgage Security Agreement with this comprehensive ready-to-use template for US mortgages.
- The wraparound mortgage (also called a piggyback mortgage) is a second mortgage with a face value of both the amount it secures and the balance due under the first mortgage on the subject property.
- The wraparound mortgage is subordinate to the first mortgage.
- The borrower makes payment to the new mortgagee (lender or seller) based on the face value of the wrap-around mortgage, and the new mortgagee in turn makes the monthly payments to the original mortgagee.
- The borrower must ask permission of the mortgagee prior to making significant alterations to the mortgaged property.
- Any agreement between the parties pursuant to the mortgage shall be superior to the rights of the holder of any intervening lien or encumbrance.
- Any award or compensation payable pursuant to condemnation proceedings will be payable to the mortgagee.
- Intended for use only in the United States. Individual States may have statutory forms which must be used instead.
Last Updated: 26-July-2021