Mortgage Relief

(Mirror Wrap)

Mortgage Relief

Sell your home as-is without inspections, loans, or appraisals.

Our Mortgage Relief solution lets you sell your property while keeping the existing mortgage in place. DLM Capital takes over the payments, allowing for a quick and easy transaction.

No Closing Costs

All closing costs and agent commissions are generally covered by DLM Capital LLC

Close on YOUR Timeline

Expedite closing by bypassing appraisals and lender involvement, typically within 21-30 business days

No Repairs Needed

AS-IS sale without inspections, repairs, or seller concessions. We handle all the clean-up.

Maximize Net Proceeds

Oftentimes exceeding the original net sheet of a traditional sale

How it Works

  1. What’s the Plan?

    We propose a custom-tailored purchase using a wraparound mortgage that mirrors the existing mortgage. This wrap adds multiple layers of security, ensuring confidence in the sale. Sellers are secured by a promissory note and deed of trust/mortgage. Payments are made to the first lien through a third party servicing company, ensuring payments are made on time. In case of default the seller can reclaim the property without formal foreclosure proceedings.

  2. Benefits to Sellers:
  • Quick Sale: Expedites closing by bypassing appraisals and lender involvement, typically within 21-30 business days.
  • No Repairs Needed: AS-IS sale without inspections, repairs, or seller concessions. We handle all the clean-up.
  • Mortgage Relief: Buyer assumes all payment responsibilities. Payments are made through a third party servicing company.
  • Cost-Free Sale: All closing costs and agent commissions are covered by DLM Capital.
  • Maximizes net proceeds: Sometimes exceeding the original net sheet of a traditional sale.
  • Minimal Impact on Future Buying Power: Ensures the seller’s ability to secure future financing is not compromised.
  1. Security Instruments:
  1. How It Works:
  • Sellers hold a lien position, allowing foreclosure if the buyer misses a payment.
  • Transactions are processed as usual by a title and escrow company.
  • In case of a missed payment, the seller can record the warranty deed and reclaim the property.
  1. Why It’s Safe:
  • DLM Capital has the fiscal capacity to maintain payments on our portfolio for 36 months.
  • Sellers are added as additional insured on the landlord insurance policy.
  • Security instruments provide peace of mind and ensure sellers can reclaim their home if needed.
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F.A.Q.

With our Mortgage Relief solution, you sell your home while we take over the mortgage payments. All property-related concerns—such as repairs, tenants, or maintenance—become our responsibility from the moment we take over.

We can complete Mortgage Relief transactions quickly, often faster than traditional sales – typically within 30 days since there’s no need for a new mortgage approval.

We’re not incentivized to miss payments, and we include a buffer to ensure your mortgage is paid on time. If the worst happens, you’re protected and can deed the house back to yourself without formal foreclosure proceedings.

No, you don’t need to handle repairs, tenants, or any other property issues. We take over the property as-is and manage all of those responsibilities moving forward.

The mortgage stays in your name, but we handle the payments. You no longer need to worry about the property itself; we take care of everything from repairs to tenant management.

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Why we use a Third-Party Servicing Company

  1. Payment Security and Peace of Mind: Using a third-party servicing company ensures your payments are collected and processed on time, every time. These companies manage the payments from the buyer and ensure your existing mortgage is paid promptly.
  2. Monthly Receipts for Your Records: You will receive monthly receipts of all payments made, which you should keep as proof for your next lender. These receipts show that your mortgage is being serviced by a third party, helping to offset your debt-to-income ratio and making it easier for you to qualify for future financing.
  3. Professional Management:
  • Expertise: Our servicing partners are experts in managing mortgage payments and related administrative tasks, ensuring accuracy and compliance with all regulations.
  • Neutral Party: Acting as an independent entity, the servicing company ensures fair and transparent processing of payments.
  1. Simplified Transactions:
  • Streamlined Process: The servicing company handles all payment-related tasks, making the transaction process smoother and more efficient.
  • Escrow Management: They also manage escrow accounts for property taxes and insurance, ensuring these are paid on time and protecting the value of your property.
  1. Ensures Future Buying Power: By documenting all payments through a third-party servicing company, you maintain your ability to secure future financing. This is crucial for sellers who worry that keeping an existing mortgage in their name will hinder their ability to qualify for a new mortgage.

Conclusion: 

Using a third-party servicing company offers significant advantages for you as a seller. It ensures your payments are secure, provides you with necessary documentation for future financing, and simplifies the transaction process. With our Mirror Wrap-around Mortgage offer, you can move forward confidently, knowing that your financial stability is protected.

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Pre-Signed General Warranty Deed: Purpose and Process

Purpose: The pre-signed general warranty deed is a key security instrument in our Mirror Wrap-around Mortgage offer. Its primary purpose is to protect the seller’s interests and provide a clear, legal pathway to reclaim the property in case the buyer defaults on their obligations.

Process:

  1. Agreement Stage:
    • During the agreement phase, the buyer signs a general warranty deed transferring the property to the seller . However, this deed is not immediately recorded.
    • The signed deed is held in escrow by a neutral third-party servicing company or an escrow agent.
  2. Payment Management:
    • The buyer makes monthly mortgage payments to the third-party servicing company, which in turn ensures the seller’s existing mortgage is paid.
    • The servicing company sends monthly receipts to the seller, providing proof of payment that can be shown to future lenders to offset the seller’s debt-to-income ratio.
  3. Default Scenario:
    • If the buyer fails to make the required payments, the servicing company initiates the default management process.
    • The pre-signed deed is then recorded, transferring the property back to the seller without the need for formal foreclosure proceedings.

Legal Considerations

  1. Protection for the Seller:
  • Promissory Note and Deed of Trust/Mortgage: The seller is secured by a promissory note and a deed of trust or mortgage, depending on the state. This means the seller has a legal claim to the property if the buyer defaults.
  • Foreclosure Avoidance: By using the pre-signed deed, the seller can reclaim the property swiftly and efficiently, avoiding the lengthy and costly process of formal foreclosure.
  1. Compliance with State Laws:
  • The use of a pre-signed general warranty deed must comply with state and local real estate laws. It is important to ensure that all documents are correctly prepared and legally binding.
  • Our team works with experienced real estate attorneys to ensure that the deed and all related documents meet legal requirements and protect the interests of all parties involved.
  1. Clear Title Transfer:
  • A general warranty deed provides the highest level of protection for the buyer, as it guarantees that the seller holds clear title to the property and has the right to sell it.
  • In the event of a default, this same level of protection works in reverse, ensuring the seller regains clear title to the property when the deed is recorded.
  1. Escrow and Neutrality:
  • Holding the pre-signed deed in escrow with a neutral third-party servicing company or escrow agent ensures fairness and transparency. Neither the buyer nor the seller can unilaterally alter the terms without mutual consent.
  • The escrow agent follows predetermined instructions to release and record the deed only under specified conditions, such as a buyer’s default.

Conclusion

The pre-signed general warranty deed is an essential component of our Mirror Wrap-around Mortgage offer, providing robust protection for the seller and ensuring a streamlined process for reclaiming the property if necessary. By adhering to legal standards and utilizing professional third-party services, we offer a secure and efficient transaction experience.

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Promissory Note and Deed of Trust/Mortgage: Definitions and Importance

  1. Promissory Note:

    • Definition: A promissory note is a legal document in which the buyer (borrower) promises to repay a specific amount of money to the seller (lender) under agreed-upon terms. It outlines the loan amount, interest rate, payment schedule, and other relevant terms.
    • Importance: The promissory note serves as the buyer’s formal, written commitment to repay the loan. It provides clear evidence of the debt and the buyer’s obligation to make payments, offering legal recourse for the seller if the buyer defaults.

  2. Deed of Trust/Mortgage:

    • Definition: A deed of trust (or mortgage, depending on the state) is a legal document that secures the promissory note with the property being purchased. It involves three parties: the trustor (buyer), the beneficiary (seller), and the trustee (neutral third party). The deed of trust/mortgage places a lien on the property, giving the seller a legal claim to it if the buyer defaults.
    • Importance: This document ensures that the property serves as collateral for the loan. It provides the seller with a security interest in the property, meaning they can foreclose on the property if the buyer fails to meet the terms of the promissory note.

Legal Protections for Sellers:

  1. Lien Position:

    • Secondary Lien: The bank holding the existing mortgage retains the primary lien on the property. The seller holds a second lien through the deed of trust/mortgage. This means the seller has a legal claim to the property subordinate to the bank’s claim.
    • Foreclosure Rights: If the buyer fails to make the required payments, the seller can initiate foreclosure proceedings to reclaim the property.

  2. Legal Documentation:

    • Recording: Both the promissory note and deed of trust/mortgage are recorded with the county, providing public notice of the seller’s interest in the property. This legal documentation reinforces the seller’s rights and helps prevent any disputes over ownership.
    • Title Insurance: Title insurance is obtained to protect against any future claims or disputes over the property’s title. This ensures that the seller’s security interest is clear and undisputed.

  3. Neutral Third Party:

    • Trustee Role: The trustee in a deed of trust arrangement acts as a neutral third party who holds the legal title to the property until the loan is repaid. This ensures fair handling of the property in case of default, protecting the seller’s interests.
    • Escrow Management: The involvement of an escrow company ensures that all payments, documentation, and legal processes are managed professionally and transparently, providing additional security for the seller.

Conclusion:

The promissory note and deed of trust/mortgage are essential components of our Mirror Wrap-around Mortgage offer, providing robust legal protections for the seller. These documents ensure that the seller’s financial interests are safeguarded, offering clear, enforceable pathways to recover the property if necessary.

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Landlord Insurance Details and Seller’s Position as Additional Insured

Landlord Insurance Details:

  1. What is Landlord Insurance?
    • Landlord insurance is a type of property insurance specifically designed to protect property owners who lease their properties to tenants. It covers the building itself, as well as any additional structures on the property.
  2. Coverage:
    • Property Damage: Covers physical damage to the property caused by fire, storms, theft, vandalism, and other covered perils.
    • Liability Protection: Provides coverage if someone is injured on the property and the landlord is found legally responsible. This includes medical expenses and legal fees.
    • Loss of Rental Income: If the property becomes uninhabitable due to a covered event, landlord insurance can cover the loss of rental income during the repair period.
  3. Additional Protections:
    • Contents Insurance: Covers items owned by the landlord that are used to service the rental property, such as appliances or maintenance equipment.
    • Legal Expenses: Covers legal costs associated with evicting a tenant or other legal disputes related to the rental property.

Seller’s Position as Additional Insured:

  1. What Does Additional Insured Mean?
    • Being listed as an additional insured on the landlord insurance policy means that the seller is afforded certain protections under the policy. This status provides the seller with coverage in the event of a claim related to the property.
  2. Benefits to the Seller:
    • Protection: As an additional insured, the seller is protected against claims related to the property, providing an extra layer of security during the mortgage period.
    • Peace of Mind: Knowing that they are covered by the insurance policy helps sellers feel more secure in the transaction.
  3. Process:
    • Policy Endorsement: The landlord insurance policy is endorsed to include the seller as an additional insured. This endorsement is a formal addition to the policy, specifying the seller’s rights and protections.
    • Documentation: The insurance company provides a certificate of insurance showing the seller as an additional insured. This document is important for the seller’s records and future financial transactions.
  4. Claims Handling:
    • In the event of a claim, the insurance company will handle the process, including any investigations, settlements, or defense costs. The seller, as an additional insured, will receive the same level of service and protection as the primary insured (the buyer).

Conclusion:

Incorporating landlord insurance and listing the seller as an additional insured are crucial steps in our Mirror Wrap-around Mortgage offer. These measures provide robust protection for the property and additional security for the seller, ensuring a smooth and secure transaction.

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Minimal Impact on Future Buying Power

Many sellers worry that keeping an existing mortgage in their name will hinder their ability to qualify for a new mortgage. We address this concern directly to ensure our sellers can move forward confidently with their next purchase.

    1. Lease Purchase Agreement: To mitigate the impact on a seller’s debt-to-income (DTI) ratio, we employ a lease purchase agreement where DLM Capital acts as the tenant. This lease agreement is crafted with monthly payments set at 125% of the seller’s current Principal, Interest, Taxes, and Insurance (PITI).

    2. How It Works:

      • FHA and Conventional Loans: These loan types allow for the offsetting of debt by 75%. By setting the lease payment at 125% of the seller’s current PITI, we ensure that 100% of the debt is offset when the seller applies for their next mortgage.
      • VA Loans: For sellers using VA loans, which offset debt by 100%, we set the lease purchase agreement at 100% of their current PITI, fully offsetting the debt and easing their path to new financing.

    3. Example Scenario:
      • Current PITI: $1,000 per month.
      • Lease Purchase Payment (FHA/Conventional): $1,250 per month (125% of current PITI).
      • Debt Offset: 75% of $1,250 = $937.50. This means the remaining portion of the $1,250 payment ($312.50) covers any additional perceived risk or simply ensures full offset for the lender’s calculation.
      • Lease Purchase Payment (VA): $1,000 per month (100% of current PITI).

    4. Seamless Transition: Once the seller qualifies for their new mortgage, we void the lease purchase agreement. This step is purely a formality to facilitate the seller’s qualification for their new home without affecting their DTI ratio.

    5. Advantages:
      • Maintained Buying Power: Sellers can confidently secure new financing without their existing mortgage impacting their DTI.
      • Smooth Process: Our approach ensures a seamless transition, removing financial obstacles for sellers.
      • Peace of Mind: Sellers can move forward with their lives knowing that their financial stability is intact.
Contact Us

Pre-Signed General Warranty Deed: Purpose and Process

Purpose: The pre-signed general warranty deed is a key security instrument in our Mirror Wrap-around Mortgage offer. Its primary purpose is to protect the seller’s interests and provide a clear, legal pathway to reclaim the property in case the buyer defaults on their obligations.

Process:

  1. Agreement Stage:
    • During the agreement phase, the buyer signs a general warranty deed transferring the property to the seller . However, this deed is not immediately recorded.
    • The signed deed is held in escrow by a neutral third-party servicing company or an escrow agent.
  2. Payment Management:
    • The buyer makes monthly mortgage payments to the third-party servicing company, which in turn ensures the seller’s existing mortgage is paid.
    • The servicing company sends monthly receipts to the seller, providing proof of payment that can be shown to future lenders to offset the seller’s debt-to-income ratio.
  3. Default Scenario:
    • If the buyer fails to make the required payments, the servicing company initiates the default management process.
    • The pre-signed deed is then recorded, transferring the property back to the seller without the need for formal foreclosure proceedings.

Legal Considerations

  1. Protection for the Seller:
  • Promissory Note and Deed of Trust/Mortgage: The seller is secured by a promissory note and a deed of trust or mortgage, depending on the state. This means the seller has a legal claim to the property if the buyer defaults.
  • Foreclosure Avoidance: By using the pre-signed deed, the seller can reclaim the property swiftly and efficiently, avoiding the lengthy and costly process of formal foreclosure.
  1. Compliance with State Laws:
  • The use of a pre-signed general warranty deed must comply with state and local real estate laws. It is important to ensure that all documents are correctly prepared and legally binding.
  • Our team works with experienced real estate attorneys to ensure that the deed and all related documents meet legal requirements and protect the interests of all parties involved.
  1. Clear Title Transfer:
  • A general warranty deed provides the highest level of protection for the buyer, as it guarantees that the seller holds clear title to the property and has the right to sell it.
  • In the event of a default, this same level of protection works in reverse, ensuring the seller regains clear title to the property when the deed is recorded.
  1. Escrow and Neutrality:
  • Holding the pre-signed deed in escrow with a neutral third-party servicing company or escrow agent ensures fairness and transparency. Neither the buyer nor the seller can unilaterally alter the terms without mutual consent.
  • The escrow agent follows predetermined instructions to release and record the deed only under specified conditions, such as a buyer’s default.

Conclusion

The pre-signed general warranty deed is an essential component of our Mirror Wrap-around Mortgage offer, providing robust protection for the seller and ensuring a streamlined process for reclaiming the property if necessary. By adhering to legal standards and utilizing professional third-party services, we offer a secure and efficient transaction experience.

Contact Us

Cost-Free Sale/Costs paid by Buyer

Detailed Breakdown of Costs Covered:

  1. Closing Costs:
    • Title Insurance: We cover the cost of title insurance, which protects against any future claims or legal fees associated with disputes over the property’s title.
    • Escrow Fees: All fees charged by the escrow company for managing the transaction are covered by us.
    • Recording Fees: Fees for recording the new deed and any other required documents with the county are included.
  2. Agent Commissions:
    • We cover the listing real estate agent’s commission and waive our buyer side representation, ensuring that the seller does not have to pay these fees out of pocket.
  3. Transfer Taxes:
    • Any transfer taxes imposed by local or state governments are covered, ensuring a smooth transfer of ownership without additional financial burden on the seller.
  4. Inspection Fees:
    • If any inspections are required, such as termite or structural inspections, we cover these costs.
  5. Attorney Fees:
    • If the transaction requires the services of an attorney, we cover these fees to ensure all legal aspects are properly managed and documented.
  6. Miscellaneous Fees:
    • Any additional fees that may arise during the transaction process, such as notary fees, courier fees, or other administrative costs, are also covered.

Examples of Cost Savings:

  1. Traditional Sale vs. Mirror Wrap-around Mortgage:
    • Traditional Sale:
      • Closing Costs: $4,000
      • Agent Commissions: $18,000 (6% of a $300,000 sale)
      • Transfer Taxes: $3,000
      • Inspection Fees: $500
      • Attorney Fees: $2,000
      • Total: $27,500
    • Mirror Wrap-around Mortgage:
      • Closing Costs: $0
      • Agent Commissions: $0
      • Transfer Taxes: $0
      • Inspection Fees: $0
      • Attorney Fees: $0
      • Total: $0
    • Total Savings: $27,500

Conclusion:

Our Mirror Wrap-around Mortgage offer provides significant cost savings by covering all the usual expenses associated with selling a property. This cost-free approach not only ensures a smooth and efficient transaction but also maximizes the seller’s net proceeds, making it an attractive option for those looking to sell quickly and without financial burden.

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