Commodities Stock Glossary Wraparound mortgage leaves

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Commodities & Stock Glossary: Wraparound mortgage

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Term:

Wraparound mortgage

Definition:

A second Mortgage that Leaves the original mortgage in force. The Wraparound mortgage is held by the lending institution as security for the Total mortgage debt. The borrower makes payments On both loans to the wraparound lender, which in Turn makes payments on the original senior mortgage.

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