Here’s a youtube tour of a few more Encinitas houses on the foreclosure rolls.

The first clip looks like it was an A.I.T.D., an all-inclusive trust deed – also known as a wrap-around mortgage.  It was advertised on the MLS as a no money down deal, where the seller’s mortgage stays in place, but not assumed.  The seller collects payments higher than what he owes, skimming a little interest for the remaining $400,000 extra owed on top of the loan balance, in this case.

But when the buyer quits making payments, he still has possession and occupancy, but the seller is responsible for the loan.  These are a glorified lease-option, with more burden on the sellers.  Here is an example of the math: Example of a Wrap

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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