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My name is Marcelo. I have been practicing for 17 years. Wrap mortgages are not illegal in any jurisdiction. The problem with a wrap mortgage is that it creates a violation of the "due on sale" clause, which says that the property shall not be sold without paying off the mortgage. So, even though payments may be current, any wrap mortgage is in default. A non-monetary default, but a default nonetheless.
As for forms, and review of the final documents, that is really outside of the purview of what we do here. You should hire a local attorney to perform those services for you. If I have answered your question, please provide positive feedback so I can receive payment. If you require additional information, please let me know.
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