Finance
A wraparound mortgage (all-inclusive deed of trust in California):
AReplaces the existing mortgage entirely
BIncludes the existing loan balance plus additional financing from the seller✓ Correct
CRequires lender approval to create
DIs used exclusively for commercial properties
Explanation
A wraparound (AITD — All-Inclusive Deed of Trust) is a form of seller financing that wraps around an existing loan. The seller continues to pay the original lender while the buyer makes payments on the larger wraparound amount to the seller.
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