Wrap-around-Mortgage
Full Question:
I would like to know if one can use a wrap-around mortgage deed in TN?
06/14/2009 |
Category: Real Property ยป Foreclosure |
State: Tennessee |
#16977
Answer:
A wrap-around mortgage is recognized in Tennesee. A wrap-around mortgage is type of loan transaction. In a wrap-around mortgage, a lender (who is often the seller of property) assumes or continues responsibility for an existing mortgage and makes a new mortgage for an additional sum which essentially "wraps" around the old mortgage, because the lender will make the payments on the old mortgage.
In Tennessee, as per Tenn. Code Ann. § 47-28-101 4) "Mortgage" includes a mortgage, deed of trust, or other conveyance of real property securing obligations, except instruments creating or perfecting a security interest in fixtures which do not include other real property.
