You should always have it done by an attorney, because the underlying Note has to be thoroughly examined so that the AITD second matches any special provisions in the wrapped Note..
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"A financing arrangement that is used as an alternative to refinancing an entire existing mortgage loan. The existing assumable loan is combined with a new loan at an interest rate between the rate on the old loan and the current market rates. The monthly payment is then changed to be made out to the second lender, who first passes a portion of the loan payment to the original lender, and then wraps the remainder of the old loan with the new loan."
Also - a Sample/Example Wraparound Mortgage found here:
(Commercial Real Estate Investing For Dummies, page 173, "Operating a Wraparound Mortgage Like a Surgeon"[ Edited by kwhite34 on Date 03/07/2009 ]
Google "wrap mortgage" investor example
http://realtytimes.com/rtpages/20040531_wraparoundmtg.htm
You should always have it done by an attorney, because the underlying Note has to be thoroughly examined so that the AITD second matches any special provisions in the wrapped Note..
[addsig]
I found this definition at Bankapedia:
"A financing arrangement that is used as an alternative to refinancing an entire existing mortgage loan. The existing assumable loan is combined with a new loan at an interest rate between the rate on the old loan and the current market rates. The monthly payment is then changed to be made out to the second lender, who first passes a portion of the loan payment to the original lender, and then wraps the remainder of the old loan with the new loan."
Also - a Sample/Example Wraparound Mortgage found here:
(Commercial Real Estate Investing For Dummies, page 173, "Operating a Wraparound Mortgage Like a Surgeon"[ Edited by kwhite34 on Date 03/07/2009 ]