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About Void Contracts When the contract is created, it may be valid if it meets all required conditions for validity, such as capacity and free consent. However, an impossibility to act or a future change in the law, making performance impossible, makes the contract void, ceasing the enforceability.

As the term implies, a wrap-around contract is a type of financing where the seller carries back a private note that wraps around the existing mortgage on the home.I'm willing to take a $30,000 down payment with the balance of the purchase price to be financed on a $270,000 private contract using a wrap-around note.

With a wrap-around mortgage, the seller keeps the existing mortgage on the home, offers seller financing to the buyer and wraps the buyer's loan into the existing mortgage.Because of this position, the original lender can still foreclose on the house if the seller fails to pay the existing mortgage.

There's also something called a wrap-around land contract. Essentially, the buyer and seller agree to a seller-financed land contract, but the seller keeps paying on their existing mortgage, pocketing the difference between their mortgage payment and what they are paid on a monthly basis by the buyer.

Disadvantage #1: The title does not automatically pass to the purchaser in a land contract. Disadvantage #2: The seller could be held legally responsible for inspection issues with local or state authorities. Disadvantage #3: Forfeiture of a land contract by the purchaser is a fairly common occurrence.

Generally, the seller carries the loan for a fixed number of years, at which time a balloon payment is due.Pro: Financing.Pro: Win-Win For Seller.Pro: A Sales Tool In A Tough Market.Con: Buyer Depends On Seller.Con: Contract Mistakes.Con: The Buyer Could Feel Like The Owner.

When parties enter into an Installment Land Contract, the buyer typically takes possession of the property and assumes the rights and responsibilities of ownership, but the deed is not delivered to the buyer until the contract price has been paid in full.