In short, with years of experience in traditional and non traditional real estate transactions, we are able to creatively craft a tailored solution to every real estate situation. Whether its a foreclosure, low or no equity, distressed property, needing a fast close, or a house that just will not sell in the current market, Redwood Real Estate Solutions has a solution. We utilize various strategies including but not limited to Cash, Seller Financing, Mirror Wraps (Subject-To), Loan Assumptions, and/or a combination of these.

A Mirror Wrap Around Mortgage, often time called a Subject-To transaction, is a type of transaction where the seller of a home, creates a new mortgage for a buyer and that mortgage then wraps around and mirrors the underlying existing mortgage and its terms. It is a fancy way of saying "the buyer will purchase the house while leaving the existing loan in place and take over making those existing mortgage payments". We structure these in a way where the seller receives an All Inclusive Deed of Trust and a Promissory Note to protect the seller.

Seller Financing, in its most simplistic form, is when a buyer gives a seller a down payment and then makes monthly payments to the seller in exchange for the house. The seller now becomes the bank and creates a mortgage for the buyer.

A Hybrid Transaction is when a buyer takes over a sellers mortgage via Subject-To but then also seller finances the remaining equity on the property. This is a combination of a Mirror Wrap and a Seller Financing Transaction.

Yes Mirror Wraps (Subject-To) transactions are most definitely legal. In fact, in the 1980's Mirror Wraps were extremely common in not only residential but also commercial real estate transactions. There is actually two line items in the closing settlement statements (HUD-1) that are created at the end of every real estate transaction. They are line items 203 and 503, you can see them here: https://www.hud.gov/sites/documents/1.PDF. Here is also a video of Attorney William Bronchick explaining Subject-To: Buying Subject To Existing Loan is LEGAL!.