How Can You Avoid Wrap Around Mortgage Foreclosure?

A wrap around mortgage allows you to take a loan slightly larger than you may have qualified for previously. It does this by adding an additional sum around your principal loan. The wrap around lender is taking on a greater risk by extending you more financing, but you are also risking default if you cannot make payments on the now-larger loan. To avoid foreclosure, start by taking the loan only if it fits your budget. Put away at least three months' worth of salary into a "rainy day" account, separate from all other savings. Finally, if you feel you are at risk of missing payments, take action to immediately contact your lender and discuss methods to work out the loan.