I am a real estate agent that has a client selling their home and has received an offer that will get them out of their house without short sale or owing any additional funds. However the offer includes "wrapping" the existing loan. My clients understand the concept, the risk, etc. However, I am out of my league when it comes to adding the appropriate contract verbiage that protects both parties if there is a default ... an exit strategy. What type of attorney should I be looking for? Is there some standard verbiage I can use as a starting point and then have reviewed by an attorney prior to have the parties sign?
Real Estate Attorney
You need a real estate attorney who has handled these matters. I am certainly not the only one, but would be happy to help. There are risks for both parties, and you'll need an escrow company to assist with the payments. Robert.
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Wills and Living Wills Lawyer
Wrap around arrangements are not typical in Arizona and are often prohibited in the language in the promissory note or the deed of trust. You will need a real estate attorney to prepare the agreement. Ideally, both sides should be represented by an attorney to ensure that they fully aware of the risks. This would limit the risk of them suing you, as the agent, for preparing a deficient contract for the wrap-around loan. I would estimate it will cost about $2,500 in attorneys' fees, perhaps more, perhaps less.
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