Finance
In New York, a 'wraparound mortgage' is one where:
AThe new mortgage is insured by FHA
BThe seller retains their existing mortgage and issues a new, larger mortgage to the buyer that 'wraps around' the existing one✓ Correct
CMultiple properties are used as collateral
DThe lender and borrower are affiliated parties
Explanation
A wraparound mortgage is a seller-financing technique where the seller keeps their existing mortgage and creates a new, larger mortgage for the buyer. The buyer makes one payment to the seller, who then continues to pay the underlying first mortgage.
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