Finance
A wraparound mortgage in Connecticut is an arrangement where:
AThe buyer assumes the seller's existing mortgage and gets a new first mortgage
BA new mortgage 'wraps around' an existing mortgage, with the seller collecting payments and forwarding the original mortgage payment✓ Correct
CThe lender wraps all closing costs into the loan amount
DThe government guarantees both the first and second mortgages
Explanation
In a wraparound mortgage, the seller finances the buyer with a new, larger mortgage that includes the balance of the existing mortgage. The seller continues making payments on the underlying loan while collecting a higher payment from the buyer.
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