Finance
A wraparound mortgage in Minnesota involves:
AA mortgage that covers multiple properties
BA new mortgage that 'wraps around' an existing mortgage, with the new lender making payments on the existing loan✓ Correct
CA reverse mortgage for senior homeowners
DA construction mortgage for multiple buildings
Explanation
A wraparound mortgage is a form of seller financing where the seller holds a new mortgage that includes (wraps around) an existing first mortgage. The buyer makes payments to the seller, who continues paying the original first mortgage. Wraparound mortgages may violate due-on-sale clauses in conventional mortgages.
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