Finance
An Arizona 'wraparound mortgage' involves:
AA second mortgage that encompasses the first mortgage balance
BA new larger loan that includes and wraps around the existing first mortgage, with the seller collecting payments and forwarding the underlying payment✓ Correct
CA mortgage secured by multiple properties
DA construction loan that converts to permanent financing
Explanation
A wraparound mortgage is a junior loan that includes the balance of an existing first mortgage. The buyer makes one payment to the seller/wraparound lender, who then continues making the underlying first mortgage payments.
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