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Mirror Wrap - http://www.dealmakerscafe.com Forums

Original message

TJack

"Mirror Wrap" , Sun 18 Feb 09:45

I'm working on a deal where a mirror wrap seems to fit but I have never actually done a mirror wrap. I don't think they are motivated enough at this point to do a 'subject to'.

I see Bronchick has a 'wrap around mortgage clause' for doing a mirror wrap. My question is.... when you do a mirror wrap, do you only use this 'WAMC' filing this doc., or do you create a new promissory note & mortgage, filing the new mortgage and the 'WAMC'?

Also, could someone explain the last paragraph in the 'WAMC'? I want to make sure I'm reading it correctly.

Thanks,
TJack

Replies:

Lynn
Moderator

"Re(1):Mirror Wrap" , Sun 18 Feb 10:02

You create a new note and mortgage and you add the wrap-around clause to the new mortgage.

Sorry, but I have all of my forms at the office and I don't remember what the last paragraph says. If you want to e-mail it to me I will try to answer your question.

Happy Investing!
Lynn

Knowledge is important but all the knowledge in the world is worthless without action! How many offers did "you" make today?

TJack

"Re(2):Mirror Wrap" , Sun 18 Feb 11:17

If the Mortgagee herunder shall default in making any required payment of principal or interest under the above described mortgage, the Mortgagor shall have the right to advance funds necessary to cure that default and all funds so advanced by Mortgagor shall be credited against the next installment of principal and interest due under the Note secured by this mortrgage.

Also, do you hang out at your office or is it just a place to meet with buyers/sellers to negotiate deals?

Thanks,
TJack

Lynn
Moderator

"Re(3):Mirror Wrap" , Sun 18 Feb 16:23

Robert got it. It gives you the right to cure a default on the underlying mortgage.

quote:
Also, do you hang out at your office or is it just a place to meet with buyers/sellers to negotiate deals?

Our business has grown to the point that I usually go to the office just about every day to catch up on paperwork make phone calls etc. I have all of our files at the office and I prepare closing docs etc. there. And of course we use it as a meeting place. We do our closings at the office as well (my C.P.A. is only two doors down so he notarizes all of the docs).

Lynn

Knowledge is important but all the knowledge in the world is worthless without action! How many offers did "you" make today?

TJack

"Hmmmm...." , Sun 18 Feb 17:27

Maybe you should buy the building and find room for your attorney.

I've been looking for a good reason to remodel the 3rd floor of my office building. It would make a very nice office for an accountant and an attorney. Nice view of downtown, right across the street from the Green Parrot Cafe(popular watering hole), and the rent is VERY reasonable.

Thanks for the reply Lynn and Robert! I guess I missed it because I never considered making payments to the seller. Gotta stay in control.

TJack

RobertNM

"Re(3):Mirror Wrap" , Sun 18 Feb 14:46

TJack,
That paragraph basically means that if you are making payments to the seller, and he/she does not make the payment to the mortgage co, that you may make another payment, and that 2nd payment will be credited to the next scheduled pmt. In Bronchicks ILC i also think that you can charge the seller interrest for that second payment.

Robert in NM