Re: Making payment on the first after TS

The obvious problem is your exposure-- should the 1st loan ever be called. So I'd be prepared to pay it off should that occur.

From a practical perspective, I would pay a 3rd party loan servicer to handle the wrap, that is, collecting the payment from the end-buyer and making the underlying payments on the first.

The advantage is that you'll have a bureaucratic loan servicer collecting and making the payments to another bureaucratic loan servicer .

The downside is pretty much as the prior advantage: bureaucratic loan servicers. Yet, it's still the one I'd use.

Alternatively, you could "sell" the property on a contract for sale or contract for option to sell, use similar collection practices, and avoid the hassle of a messy foreclosure of your 2nd (wrap). But do monitor the 1st.

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