A type of junior mortgage in which the existing mortgage amount, plus any additional purchase funds, is loaned to a buyer by the seller is known as:

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30 July, 11:02

A type of junior mortgage in which the existing mortgage amount, plus any additional purchase funds, is loaned to a buyer by the seller is known as:

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Answer: Wraparound Mortgage

Explanation: Wraparound Mortgage are a type of junior loan usually used to refinance a property. The amount on the existing mortgage is summed up with other additional purchase value and loaned out to the buyer. Wraparound mortgage often arises when existing cannot be settled or paid off. The seller is issued a legal 'I Owe You' (IOU) detailing the total amount called a Promissory Note.