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Hi Andrew, I'm in London and have been since Nov 2001. It's 5pm here. Why the Dickens (not Charles) are you still up? Regards, Mike

Hi Andrew, A wrap can be used as a generic term that includes Lease Options to describe a form of vendor or seller finance whereby a first mortgage on the property exists. The vendor assumes responsibility for an existing mortgage while selling the property via instalments. The instalment or...

Hang on, I haven't finished!;) Some wrappers simply don't tell the lender what they are doing. In otherwords, they are ignoring the Due on Sale provisions. This is risky because if the lender finds out they may call the loan in. In a wrap using a Lease Option as long as the tenant-buyer doesn't...

Yes. When a home is financed, the borrower agrees to make regular monthly payments. However, if those payments are not made, if they are late, or if the lender's security is reduced (by not making payments, damaging the property, not maintaining insurance, not paying property taxes, selling the...

The short answer is Due-on-sale. Wrapping is all about on-selling the property to a second buyer which triggers the Due-on-sale clause that most Australian mortgage agreements contain. The same applies to Lease Options. An Option to Purchase will trigger that clause as well. When you know why...