I would not recommend that anyone take over a mortgage in this fashion without first getting written permission from the lender to do so. There is essentially a "due on sale jail", despite what the real estate gurus of today may preach. Proceed with extreme caution!

It's also important to remember that the original lender has first legal rights. So, if the home owners fail to make mortgage payments to the original lender, the original lender can initiate foreclosure procedures.

Key Points: Understand the risks of wrap-around mortgages. Understand the legal technicalities completely before ever attempting this kind of transaction. Make sure all parties understand what's involved in the process. Get written permission from the lender or don't do it! Have an attorney or Title Company write all documents carefully with protections for everyone involved.

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