Closings & Title

A seller in Texas offers you a wrap. You pay him each month, he keeps paying his own loan, and you move onto the land. From out of state, it sounds like a clean shortcut around the bank. Here is what the offer does not say out loud. In a wrap, you do not get legal title, and you do not control the loan that sits under yours. So your home can be at risk even when every payment you make is on time. This guide is written for the out-of-state buyer, not the investor selling the wrap. Let us walk through what you are really agreeing to, in plain terms. In This Article: What a Wraparound Mortgage Actually Is The Title Problem at the Center of a Wrap The Underlying Loan You Cannot Control The Due-on-Sale Clause Where Texas Law Tries to Protect You Rural Land Adds a Second

You found rural Texas land from a thousand miles away. Now the seller offers to finance it himself, with no bank involved. And he quotes a rate and a monthly payment, and the deal feels easy. Here is the part most out-of-state buyers miss. In seller financing, the rate is rarely where your risk lives. Instead, your real exposure sits in the title you get, the liens ahead of you, and the default terms. Buyers focus on the rate because it is the number they understand. Meanwhile, the terms that can cost them the land sit in the paperwork, unread. In This Article: Why Seller Financing Looks Simple and Often Is Not The Title You Get May Not Be the Title You Picture Contract for Deed Versus Deed of Trust Where Buyer Risk Actually Concentrates The Liens Sitting Ahead of You Default Terms and the Balloon Payment Raw Land Adds