Finance
A 'wraparound mortgage' in Florida is one where:
AA new first mortgage replaces all existing liens
BA new mortgage wraps around (includes) an existing mortgage, with the new lender making payments on the underlying loan✓ Correct
CThe buyer assumes the seller's mortgage and gets additional financing from the same lender
DTwo mortgages from two different lenders are combined into one payment
Explanation
A wraparound (all-inclusive) mortgage is a seller-financing technique where the seller creates a new mortgage that includes (wraps around) the existing underlying mortgage. The buyer makes one payment to the seller, who continues making payments on the original loan.
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