Finance
In New Mexico, which of the following is a 'wraparound mortgage'?
AA mortgage with adjustable rates that 'wrap around' an index
BA new mortgage that encompasses (wraps around) the existing first mortgage, with the new lender collecting combined payments✓ Correct
CA mortgage requiring a 360-degree property inspection
DA construction mortgage that wraps around a permanent loan
Explanation
A wraparound mortgage is a seller-financing tool where the seller creates a new mortgage that includes the existing mortgage balance. The buyer pays the seller, who then pays the underlying lender.
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