|
Home
Latest Information
1031 Tax-Deferred
Exchange
Lease-Option
Escrows
Residential
Sales
Loan Escrows
All Inclusive
Trust Deed (AITD's)
Land Sale Contracts
Commercial Property
Sales
REO's
Relocation
Reference Numbers
& Info
Escrow information
|
AITD's
(All Inclusive Trust Deed)
A mortgage that includes in its balance an underlying mortgage. Rather than having distinct and separate first and second mortgages, a wraparound mortgage includes both. For example, suppose that there is an existing first mortgage of $100,000 at 6% interest. A second mortgage can be arranged for $50,000 at 10% interest. Instead of getting that second mortgage, the borrower arranges a wraparound for $150,000 at 8%. The first mortgage of $100,000 stays intact. The borrower pays the wraparound lender one payment on the $150,000 wraparound, and the wraparound lender remits the payment on the first mortgage to the first mortgage lender.
SOURCE:http://www.answers.com
|
May be
either All-Inclusive or Split Interest
|