Creative Solutions To Financing Real Estate
Owner financing and wraparound transactions both provide buyers and sellers with creative ways to finance real estate purchases. Although owner financing and wraparound transactions are legal, both processes are more difficult than they used to be. Working with an experienced real estate lawyer can help ensure that your contract is legally binding and that your rights are protected in the immediate and distant future.
At The Weaver Law Firm, we provide individuals throughout Houston, TX, with the legal counsel they need in traditional owner finance matters and wraparound transactions. Email us to learn more about your owner finance options.
Understanding Your Finance Options
A traditional owner finance transaction involves using a warranty deed to put real property in the name of the buyer subject to a vendor's lien. In turn, the seller receives a real estate lien note secured by a deed of trust. This lien typically becomes the first lien against the property, so if the buyer defaults, the seller can foreclose in the usual manner.
A wraparound transaction is a more creative seller-financing option in which the original loan and lien are left on the property when it is sold. Typically, the buyer makes a down payment, receives a warranty deed and signs a new note to the seller for the remainder of the sale price and sometimes more. The buyer makes monthly payments to the seller on the wrap note and the seller makes payments to the original lender, the first lien holder.
When you contact The Weaver Law Firm, our attorney can educate you about the risks and benefits of the various finance options and help you pick the right solution for your situation. Learn more by scheduling an initial consultation using our online contact form or by calling 713-454-7875.
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