Finance
A seller in Georgia who takes back a purchase money mortgage must disclose that the security deed will be subordinate to the existing first mortgage. This situation is known as:
AA wraparound mortgage
BA second mortgage or junior lien✓ Correct
CA blanket mortgage
DA participation mortgage
Explanation
When a seller takes back a second mortgage (purchase money mortgage), it is subordinate (junior) to the existing first mortgage. The first lender has priority in the event of foreclosure.
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