Finance
In New York, a 'wraparound mortgage' is a form of seller financing where:
AThe buyer assumes the seller's existing mortgage and the seller takes back a new mortgage
BA new mortgage 'wraps around' the existing first mortgage, with the seller collecting payments from the buyer and continuing to pay the existing mortgage✓ Correct
CThe lender provides financing for both the land and the building in a single loan
DMultiple lenders share the risk on a large commercial loan
Explanation
A wraparound mortgage is a seller financing arrangement where the seller (still responsible for the underlying first mortgage) takes back a new, larger mortgage from the buyer that encompasses (wraps around) the balance of the existing first mortgage. The buyer makes one payment to the seller, who then continues paying the existing lender.
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