Finance
In NJ, a 'wraparound mortgage' (or 'all-inclusive trust deed') involves:
AA mortgage secured by multiple properties
BA new mortgage that encompasses and pays an existing mortgage, with the seller acting as the lender at an overall higher rate✓ Correct
CA government-backed loan program
DA second mortgage on a vacant lot
Explanation
A wraparound mortgage is a seller-financing technique where the seller extends a new, larger mortgage to the buyer at a higher interest rate, while continuing to service the underlying existing mortgage, profiting from the rate spread.
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