Finance
A wraparound mortgage is one in which:
AThe new lender pays off the existing mortgage and issues a new loan
BA new loan encompasses the existing loan, with the seller continuing to make payments on the underlying mortgage✓ Correct
CThe buyer assumes the existing mortgage and the lender issues a second lien for the difference
DThe lender provides financing for both the land and construction
Explanation
A wraparound mortgage (all-inclusive deed of trust) is a form of seller financing in which the seller gives the buyer a new mortgage that includes the existing underlying mortgage balance. The buyer makes one payment to the seller, who continues paying the original lender.
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