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Amy Stake has a mortgage which includes the furniture and other personal property in addition to the house. What type of mortgage is this?

A. Participation Mortgage
B. Wraparound Mortgage
C. Blanket Mortgage
D. Package Mortgage

User Fuad Saud
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1 Answer

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Final answer:

Amy Stake has a Package Mortgage, which combines both real property and personal property, like furniture, in one loan.

Step-by-step explanation:

Amy Stake's mortgage, which includes both the house and additional personal property like furniture, is appropriately categorized as a Package Mortgage. In a Package Mortgage, real property (the house) and personal property (furniture and other items) are combined into a single loan, offering a comprehensive financing solution.

This differs from other types of mortgages, such as a Blanket Mortgage, which covers multiple properties under a single loan, a Wraparound Mortgage, which includes existing mortgages and adds a new one, or a Participation Mortgage, involving shared profits between lender and borrower. The distinctive feature of the Package Mortgage is its incorporation of both real and personal property in a unified financing arrangement, providing borrowers like Amy Stake with a comprehensive means of securing funding for both aspects of their property.

User Pedro Yan Ornelas
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