DIY Legal Forms

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Wraparound Mortgage

[Rider to be added to the standard mortgage]

1. Identification of Wraparound Mortgage. This Mortgage is a wraparound mortgage. The security given hereby secures the loan made by Mortgagee to Mortgagor, as well as the balance due under the following prior mortgage (Prior Mortgage): Mortgage, dated [date], made by [name] to [lending institution], in the original principal sum of ---------- dollars ($----------) and reduced to the present principal balance of ---------- dollars ($----------), recorded on [date] in liber [number], page [number], of the Clerk of [county]'s Records. This wraparound mortgage is subordinate to the Prior Mortgage.

2. Limit Future Modifications.

a. No change in Prior Mortgage. Neither Mortgagor nor any future owner of the mortgaged premises will, except as provided in this Mortgage, without the written consent of Mortgagee, cancel, modify, waive, defer, or delay compliance with any of the terms of the Prior Mortgage.

b. Default. If any action described in Paragraph 2(a) is taken without the written consent of Mortgagee, Mortgagee, at Mortgagee's option (i) may declare the entire unpaid principal hereunder immediately due and payable or (ii) may exercise Mortgagee's right to receive a sum equal to the amount by which any payments on the Prior Mortgage are reduced, deferred, or waived, which sum will be applied to reduce the principal of the note secured by this Mortgage. The failure to make the latter payment within [number] days of demand for such payment by Mortgagee is a default under this Mortgage enforceable in the same manner as a default in making any payment required by this Mortgage.