Buying or selling a wraparound mortgage note? Understanding the underlying lien, payoff process, and lien release is an essential part of evaluating the deal.

In this episode of the Paperstac Podcast, Rick Allen and TJ Osterman explain how wraparound mortgages work and discuss what happens when a seller-financed note has an existing senior loan. Rick walks through the escrow process described in the episode, including requesting payoff figures, coordinating lien releases, and handling delays before seller funds are released.

The conversation also explores substitution of collateral, partial releases for subdivided land, and why title research matters when buying mortgage notes. Whether you invest in performing notes, originate owner-financed loans, or sell land notes, this episode helps you understand the questions to ask when a wrap enters the transaction.

Topics include:

• Wraparound mortgages and lien position
• Underlying loan payoffs and lien releases
• Escrow coordination and seller funding
• Payoff expiration dates and daily interest
• Self-directed IRA custodian delays
• Substitution of collateral
• Partial releases for subdivided land
• Title research and note buyer due diligence

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