[mother of five lovebugs]

I have bought a new home in GA. I put my existing home on the market 6mos ago after investing 15k to fix it up to sell. Its beautiful. I owe $502 and it was apprised at $565. I am asking $535 due to desperate to sell. Yet due to all of the foreclosures going on in Roseville. It has not moved. Now I am a point that I was going to walk from my home and let it go into foreclosure due to I can't afford two house payments and Ive already received my other home. Yesterday I had a man offer me a wrap around loan This is where I add him to my title and he makes my house payments and until he get good enough credit to get me off the title. This sounds scarry. Does anyone have any sound advise on how this deal works?

[RichardBondMan]

Not sure what a wrap around loan is but no way, would I go that route if, for example, he failed to pay and you would still be obligated. Is what you / he is speaking of is similar to "cosigning". It seems to me, you would still be obligated on the mortgage loan, you would simply be giving him part ownership. You mentioned his credit is not that great and if that's the case, (and even if he had great credit) would I have any part of it.

[Dr D]

I got on the net to find out if GA is a Deed of Trust or a Realty Mortgage state. It turns out that GA is a Security Deed state. Since I am not familiar with a Security Deed (the instrument that secures the promisory note), I will assume that it is similar to a Deed of Trust. A "Wraparound" is an All Inclusive Deed of Trust, where the obligation remains in your name and the buyer makes payments to you (probably through a title company) and the payments due the lender are remitted to them. Since your security instrument most likely has a Due on Sale Clause in it, the lender has the right to call the loan if you transfer any interest in the property. If the payments are all made on time and all correspondence continues to go to you, there is a good chance that the lender will do nothing. But the risk is still there, and all parties should acknowledge in writing that they are aware of that possibility. If your choices are between a foreclosure and a Wraparound, the second option wins. If you use the services of a collection agent (title company) be sure to have the payments from the buyer due a good 30 days before the mortgage payment to the lender, to make up for the turn around time in remittance from the title company. I hope this helps.