Finance
In Hawaii, a 'wraparound mortgage' is a form of seller financing where:
AA. The new mortgage pays off the existing mortgage
BB. The seller creates a new larger mortgage that 'wraps around' the existing loan, collecting payments from the buyer and paying the underlying loan✓ Correct
CC. The buyer assumes all existing liens without a new loan
DD. Multiple properties are used as collateral under one mortgage
Explanation
A wraparound mortgage allows the seller to keep the existing low-rate mortgage and create a new larger loan at a higher rate, keeping the spread between the two as profit.
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