Skip to main content

Wrap Mortgage Checklist

Structure wraparound mortgages with proper servicing, payment waterfalls, and due-on-sale protections.

How the Wrap Mortgage Checklist Works

Walk through every step of structuring a wraparound mortgage — from identifying the right property and calculating the interest rate spread to setting up third-party loan servicing and monitoring the underlying loan.

  • Calculate the interest rate spread and payment differential
  • Draft AITD terms with proper due-on-sale disclosures
  • Set up the payment waterfall through a third-party servicer
  • Monitor the underlying loan for changes or acceleration

Why This Matters

Wrap mortgages are among the most complex creative financing structures. The buyer pays the seller on a larger note while the seller continues paying the underlying smaller note. Without a systematic checklist, critical steps like payment waterfall setup and due-on-sale disclosures are easily missed — exposing both parties to serious financial risk.

  • Protect against the #1 wrap risk: seller failing to pay the underlying loan
  • Ensure full legal compliance with state disclosure requirements
  • Structure deals that work for both buyer and seller

Sample Output

See what this feature calculates for you.

Wrap Mortgage Checklist
Wrap Mortgage 13 steps
Seller Financing 14 steps
Subject-To 16 steps
Master Lease 14 steps

Ready to Use Wrap Mortgage Checklist?

Get access to this feature and everything else in Buying a Property Creatively Checklists.