Finance
A wraparound mortgage (all-inclusive trust deed) in Utah involves:
AA new first mortgage that pays off the existing loan
BA new mortgage that 'wraps around' an existing loan, with the buyer paying the new lender who continues paying the original lender✓ Correct
CCombining multiple properties as security for one loan
DA government-guaranteed loan that wraps around a conventional loan
Explanation
A wraparound mortgage is a seller-financed arrangement where the seller keeps their existing mortgage and creates a new, larger mortgage for the buyer. The buyer makes payments to the seller, who continues to make payments on the underlying loan. Due-on-sale clauses can make these risky.
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