Finance (alternative)
A Maryland 'wraparound mortgage' is a form of seller financing where:
AThe seller pays off the existing mortgage and takes a new first mortgage from the buyer
BThe new buyer assumes the existing mortgage and the seller provides a new mortgage that 'wraps around' the existing one✓ Correct
CThe lender refinances both the buyer and seller simultaneously
DThe buyer takes title subject to the existing mortgage only
Explanation
A wraparound mortgage has the seller retain the existing mortgage while providing a new larger mortgage to the buyer. The buyer makes payments on the wraparound; the seller continues paying the underlying mortgage.
Related Maryland Finance (alternative) Questions
- Maryland's predatory lending laws are designed to protect borrowers from:
- A Maryland USDA Rural Development loan is available to buyers purchasing homes in:
- Under RESPA, a kickback or unearned fee paid in connection with a Maryland real estate settlement service is:
- The Maryland HomeCredit program provides eligible buyers with:
- Maryland's 'deed tax' is another term for the:
- Maryland's foreclosure process requires judicial proceedings, which means:
- The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to:
- In Maryland, a 'hard money loan' is typically characterized by:
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →