Some of the advantages of a wrap around mortgage are:
- Higher asking price,
- Little to no closing costs,
- Typically no realtor commissions,
- Can improve the seller’s credit,
- Faster home sale,
- Market to a larger pool of buyers.
The main disadvantage to a wrap around mortgage is that if the buyer stops making payments, the seller will get the house back by either a foreclosure or a deed-in-lieu.
Markette Properties buys houses using this method and assists in a transaction with a buyer.