Selling Your Home Faster with "Terms"
-Tailoring a Winning Wraparound Mortgage-
Get Your Price Take Financial Control of Your Sale Close Faster!
NO Commissions NO Fees NO Uncertainty
What are "Terms" with a Wraparound Mortgage?
"Terms" using A wraparound mortgage is a type of financing where a Seller offers a new mortgage that "wraps around" their existing mortgage, combining the Buyer's balance into one payment. As the Seller, you become the lender and receive monthly payments directly from the Buyer while continuing to pay off your own existing mortgage.
How Do "Terms" or a Wraparound Mortgage Benefit Me as a Seller?
Offering "Terms" with a wraparound mortgage can attract more Buyers, especially those who might not be ready for traditional financing. Specifically the self employed and those well on their way and very close. You can also earn additional income by setting a higher payment and/or interest rate, increasing your monthly cash flow.
Who is Responsible for the Original Mortgage if I Offer "Terms" including a Wraparound Mortgage?
You, as the Seller, remain responsible for the original mortgage. The Buyer pays you directly, and you continue making payments on your existing mortgage using those funds.
What Happens if the Buyer Defaults on the "Terms" or Wraparound Mortgage?
Like any financing arrangement, there is some risk if the Buyer defaults. However, as the primary lender and deed holder, you maintain full control of the property. Through our proprietary process, you can reclaim possession with just a 20-day notice if necessary. We're here for you throughout the entire process and term, ensuring your interests are protected at every step.
How is the Buyer's Payment Determined In a "Terms" or Wraparound Mortgage Scenario?
You, as the Seller, determine the payment amount and timeline guided by our insight into what the market will bear. It's very subjective, but setting payments for hundreds of dollars above the payment on your existing mortgage is not uncommon, allowing you to earn additional income on the spread between the two payments for the entire duration of the "Terms" or wrapround mortgage.
Are "Terms" and Wraparound Mortgages Legal in AZ?
"Terms", including wraparound mortgages, are legal in many states, including AZ, but the laws can vary around the nation. We're compliant under AZ State Law ARS Title 33-742 through 750. It’s always wise to consult with a real estate attorney to ensure that our compliance with local regulations align with your needs and expectations.
What are the Benefits of "Terms" or a Wraparound Mortgage Compared to Traditional Selling?
Offering "Terms" or wraparound mortgage offers a faster, often more streamlined process than traditional selling, with fewer fees and no need for bank approval. It also allows you to maintain control over terms, providing an advantage over conventional financing.
Are There Any Specific Risks with Offering "Terms" or a Wraparound Mortgage?
While "Terms" and wraparound mortgages offer many benefits, there are potential risks. These include the Buyer defaulting on payments, leaving you responsible for the original mortgage. However, with proper business practices, solid paperwork, and Nexus being part of your team throughout the entire process. these risks are mitigated and can be managed.
Can I Use "Terms" or a Wraparound Mortgage If My Existing Mortgage Has a
"Due-on-Sale" Clause?
The 'due-on-sale' clause isn’t a law, but a provision allowing lenders to require full repayment if the property deed transfers. Our process ensures compliance by having you, as the Seller, retain the deed as collateral in any circumstance, only transferring it once the agreement is fully paid per Arizona Law. Everything is transparent to providing any lender or interested party by making the agreement public record for all to see.
How Do I Know If "Terms" or a Wraparound Mortgage Is Right for Me?
"'Terms", including wraparound mortgages, are right for Sellers to attract more Buyers at their price, generate monthly income, and maintain control while benefitting from providing flexible financing. This is ideal for FSBO Sellers seeking a quick sale without compromising on price.
Attract More Buyers by Offering Flexible Financing
With "Terms" and a wraparound mortgage, you can attract buyers who might not qualify for traditional financing, largely the self employed and those on the cusp of being "mortgage ready". By offering in-house financing, you’ll expand your Buyer pool which increase the chances of selling your property exponentially faster.
Generate Passive Income with a Higher Payment
When you offer "Terms" using a wraparound mortgage, you can charge a payment that’s higher than your existing mortgage, giving you extra monthly cash flow.
Keep the Sale On Budget, Simple, and Streamlined
Avoid the complexities of banks and endless paperwork! "Terms" featuring a wraparound mortgage allows for a faster closing process on budget, making for a more convenient for both you as a Seller and the Buyer.
Earn Income Without Giving Up Property Control
Customized "Terms" through a wraparound mortgage gives you control over the terms of the sale, like price, payment amount, and schedule. We'll consult you on how to maintain the power to make the sale work on desirable terms.