Finance
In Texas, a 'wraparound deed of trust' involves a seller who:
AWraps the title deed and the trust deed into one document
BRetains their existing mortgage and creates a new, larger loan to a buyer that includes the underlying mortgage✓ Correct
CPledges multiple properties as collateral for one loan
DCreates a deed of trust that wraps around the legal description of adjacent properties
Explanation
A wraparound deed of trust (or wraparound mortgage) has the seller keep their existing first mortgage and create a new, larger loan to the buyer. The buyer makes one payment to the seller, who continues paying the underlying mortgage. If the first mortgage has a due-on-sale clause, this structure can trigger default.
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