A wraparound mortgage in Texas:

Wraparound mortgages are legal in Texas when structured properly. They are not illegal, which is a common misconception. While some states have restrictions on these types of financing instruments, Texas allows them as part of the contractual agreement between buyer and seller.

A wraparound mortgage does not replace the existing mortgage; instead, it wraps around it. The original mortgage remains in place and continues to be paid through the new wraparound arrangement.

Bank approval is not required for a wraparound mortgage as it's a private financing arrangement between buyer and seller. Unlike traditional loans, it doesn't involve institutional lenders in the same way.