Finance
A 'wraparound mortgage' in Georgia is a type of seller financing where:
AA. The new mortgage covers only the down payment
BB. The seller extends a new larger mortgage that 'wraps around' the existing mortgage the seller will continue paying✓ Correct
CC. Both buyer and seller are jointly liable on one mortgage
DD. The mortgage automatically increases as property values rise
Explanation
A wraparound mortgage is a junior financing arrangement where the seller provides a new mortgage to the buyer for an amount that includes the existing mortgage balance. The seller continues paying the underlying mortgage while receiving a higher interest rate from the buyer.
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