Finance
In Kentucky, a 'wraparound mortgage' is one in which:
AThe property is completely enclosed by another property
BA new mortgage 'wraps around' an existing mortgage, with the seller collecting payments and paying the underlying loan✓ Correct
CThe lender holds both first and second mortgages
DThe buyer's and seller's mortgages are combined
Explanation
A wraparound mortgage allows the seller to provide financing by taking a new mortgage that includes (wraps around) an existing underlying mortgage, with the seller receiving payments from the buyer and continuing to pay the original lender.
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