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Wraparound Mortgage


The wraparound mortgage is two or more mortgages consolidated into one payment. This mortgage may allow the buyers to purchase with a small down payment and the added benefit of a low-interest-rate first mortgage. The sellers receive all of their cash at the time of closing. The lender wraps new money around an existing assumable mortgage loan. If in the future the borrowers have the cash available, they could pay off the new money and resort to the original, low-interest mortgage. If the mortgage contains a due-on-sale clause, it cannot be wrapped. Wrap mortgages are used when interest rates are high, allowing the buyer to take advantage of the lower rate existing mortgage without having to come up with a large down payment as in the case of a loan assumption.

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									                             Wraparound Mortgage

MADE the (date) by (Name of Mortgagor), an individual, whose address is: 1109
Laurel Drive, Flowood, MS 39232, hereinafter called Mortgagor in favor of (Name
of Mortgagee), is an Alabama Bank organized and existing under the laws of the
State of Alabama, and is hereinafter called Mortgagee.

1.     Mortgagor will pay the acknowledged indebtedness according to the terms
provided, and understands and agrees that the character and nature of this
mortgage instrument is one of a "wraparound" mortgage, and that if mortgagor
pays to mortgagee the full amount of the indebtedness evidenced by the above-
mentioned mortgage note dated (date), hereinafter called the Note, in the
principal sum of $____________, together with all accrued interest as specified,
and performs, complies with, and abides by all of the conditions, agreements,
and covenants specified in the note and in this mortgage as well, then this
mortgage instrument shall cease, terminate, and become null and void.

2.     The mortgaged premises are subject to the lien of the following-described
mortgage (the senior mortgage): (fully describe existing mortgage by specifying
date and location of its recordation, its assigned document number, the terms of
the obligation, and any unusual or otherwise necessary information describing
the note or notes secured by the existing mortgage).


This Security Instrument secures to Lender: (i) the repayment of the Loan, and
all renewals, extensions and modifications of the Note; and (ii) the performance
of Borrower’s covenants and agreements under this Security Instrument and the
Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in
trust, with power of sale, the following described property located in LOT 99,
LAURELWOOD SUBDIVISION, Part 2, a subdivision according to a map or plat
thereof which is on file and of record in the office of the Chancery Clerk of Rankin
County, Mississippi, in Plat Cabinet ____ at Slot _____, reference to which is
hereby made in aid of and as a part of this description.

3.      Mortgagor agrees to adhere to, and fully comply with, any and all of the
terms, conditions, agreements, and provisions of the senior mortgage, except as
to the requirement of making payments of principal and interest on it. On
compliance with all such terms, conditions, agreements, and provisions by
mortgagor, mortgagee agrees to pay the installments of principal and interest
due under the senior mortgage from time to time as they come due, and in
accordance with the terms of that mortgage. Nothing in this mortgage shall
require, or be held to require, the holder of the note secured by this instrument to
perform any of the terms or provisions of this mortgage which are required to be
performed or accomplished by mortgagor, except the payment of installments of
principal and interest on the senior mortgage, and even then only in accordance
with the terms, conditions, agreements, and provisions of this mortgage.

4.     Notwithstanding provisions to the contrary which may be contained in the
mentioned senior mortgage, mortgagor agrees to keep the senior mortgage in full
force and effect for its entire term. Also, mortgagor further agrees that in the
event of any default in the terms, conditions, agreements, or provisions of the
senior mortgage caused by mortgagor, the default shall also constitute and be
considered a default under the terms, conditions, agreements, and provisions of
this mortgage.

5.       Mortgagor grants, transfers, and assigns to mortgagee the entirety of the
rents, profits, and issues of the subject premises after this mortgage accruing
and becoming due as further security for the payment of the acknowledged
indebtedness. Mortgagor also grants mortgagee the right to enter on and take
possession of the mortgaged premises for the purpose of collecting the rents,
profits, or issues, and to let the premises or any portion of the same, applying
sums received as a result of the letting (after payment of all necessary charges
and expenses) towards the account of the indebtedness. This assignment and
grant shall remain in full force and effect until this instrument is paid and satisfied
in full.

6.      Mortgagee waives the right to enter on the mortgaged premises and
collect rents, issues, and profits until such time as mortgagor is in default of any
of the terms, conditions, agreements, or provisions contained in this instrument.
Until such time as mortgagor is in default for violation of such terms, conditions,
agreements, or provisions, mortgagor maintains the right to collect the above-
mentioned rents, issues, and profits, and agrees to use and apply such sums in
payment of the installments of principal and interest coming due under this
mortgage, as well as in payment of any taxes, charges, or assessments levied on
the subject premises when they become due and payable. Such right of
mortgagor may be revoked by mortgagee on (Number) days' written notice
properly served.

7.     Mortgagor agrees to pay any and all taxes, charges, or assessments
levied on the mortgaged premises when and as they come due or arise. In the
event of mortgagor's default in such payments, mortgagee may satisfy and
discharge the same and seek reimbursement from mortgagor.

8.      Mortgagor will insure the subject premises against loss by fire, designating
mortgagee as beneficiary under any and all such policies. Mortgagor will
reimburse mortgagee for any sums expended by mortgagee for such insurance
due to, or as the result of, a default by mortgagor in maintaining or establishing
insurance coverage on the mortgaged premises and its contents as required, or
for failure to assign and deliver any such policy or policies to mortgagee. Any and
all such policies shall contain the customary and usual extended coverage
endorsements. Also, if loss or damage occurs to the mortgaged premises,
mortgagor agrees to, and is required to, immediately give notice as allowed and

required to mortgagee, who may make proof of loss if not made promptly and in
a timely fashion by mortgagor.

9.      Any and all notices, demands, or requests required or desired pursuant to
this instrument shall be in writing to be effective and acceptable, and may be
served on the appropriate party, organization, individual, or entity either
personally or through the mail. Mortgagee agrees to notify the holder of the
senior mortgage that the holder is duly authorized to accept payment of
installments for the senior mortgage directly from mortgagee of this instrument,
and to request that the holder of the senior mortgage direct all notices required to
be given by the holder directly to mortgagee. The mortgagee agrees to provide
mortgagor with any and all notices, demands, or communications pertaini
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