Finance
What is a wraparound note in Nevada seller financing and what due-on-sale risk does it carry?
AA note wrapped in legal protections from the buyer
BA seller-financed note that encompasses the existing underlying mortgage balance plus additional seller financing — the due-on-sale clause in the underlying mortgage may be triggered✓ Correct
CA standard promissory note for wrap-around commercial leases
DA note wrapping multiple buyers' obligations
Explanation
A wraparound (all-inclusive trust deed) involves a seller financing note that includes the existing first mortgage balance. The buyer pays the seller; the seller continues paying the first mortgage.
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