Finance
In Ohio, a 'wraparound mortgage' involves:
AAdding flood insurance to an existing mortgage
BA new mortgage that includes (wraps around) an existing mortgage, with the new lender collecting payments and forwarding the underlying mortgage payment✓ Correct
CA government loan that wraps around a conventional loan
DCombining multiple properties under one mortgage
Explanation
A wraparound mortgage is an all-inclusive mortgage where the new lender takes over the existing mortgage, creates a new larger mortgage at a higher rate, collects payments from the buyer, and pays the underlying mortgage from those proceeds.
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