Finance
A Kansas 'wraparound mortgage' involves the seller:
ARefinancing their mortgage before the sale
BCreating a new, larger mortgage that 'wraps around' the existing mortgage, receiving payments from the buyer and continuing to pay the original lender✓ Correct
CPaying off their mortgage at closing
DTransferring the mortgage to the buyer's lender
Explanation
A wraparound mortgage is a seller-financed arrangement where the seller creates a new mortgage (at a higher rate) encompassing the existing mortgage. The seller makes payments on the original loan from the buyer's payments.
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