Finance

A Wyoming 'wraparound mortgage' could potentially violate the original first mortgage's:

APrepayment penalty clause
BDue-on-sale clause, which requires the loan to be paid off upon transfer of the property✓ Correct
CEscrow impound requirement
DPMI cancellation provision

Explanation

Many first mortgages contain due-on-sale clauses that require the loan to be repaid when the property is sold or transferred. A wraparound mortgage involves the seller 'wrapping' their loan, which may trigger the due-on-sale clause if the original lender discovers the arrangement.

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