Faith Mortgage Corp.

The home seller who does this violates his contract with the bank, which he may or may not get away with. The inducement to sellers is powerful, since they do not only obtain a high-yielding investment, but they can frequently sell their home for a nicer price. If a wrap-around deal on a non-assumable mortgage does close and the bank unearths it afterward, watch out! The bank will either call the loan, or demand an instant increase in IR and potentially a good assumption charge. If the mortgage is in default, some banks are ignoring this procedure because the mortgage is now up to date.