Finance
In Indiana, a wraparound mortgage involves:
ATwo separate mortgages on the same property from different lenders
BA new mortgage that includes an existing underlying mortgage, with the seller collecting payments and paying the original lender✓ Correct
CA government-backed loan wrapping a conventional loan
DA second mortgage on a different property as additional collateral
Explanation
A wraparound mortgage is a form of seller financing where the seller creates a new mortgage that encompasses (wraps around) the existing underlying mortgage. The buyer pays the seller, who continues paying the original lender. Wraparounds can trigger due-on-sale clauses.
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