Finance
In Arizona, a 'wraparound mortgage' (or 'all-inclusive trust deed') involves:
AA second mortgage that wraps around the property's exterior structure
BA new loan that encompasses an existing loan, where the new lender accepts payments on the new loan and continues making payments on the underlying loan✓ Correct
CA mortgage that automatically adjusts to wrap around changes in the borrower's income
DA construction loan that wraps around the permanent financing
Explanation
A wraparound mortgage (AITD—All-Inclusive Trust Deed in Arizona) is a form of seller financing where the seller carries a new, larger loan while remaining responsible for the original underlying loan. The buyer pays the seller on the new loan, and the seller pays the original lender.
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