Finance
In Texas, a wraparound mortgage (wrap) involves:
AA new first lien that pays off the existing mortgage
BA new loan that 'wraps around' an existing mortgage, with the seller continuing to service the underlying loan✓ Correct
CTwo separate first liens on the same property
DA government-backed loan that replaces all existing liens
Explanation
A wraparound mortgage is a form of seller financing where the seller retains their existing mortgage and extends new financing to the buyer at a higher rate, keeping the spread as profit. The buyer makes payments to the seller who pays the underlying lender.
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