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Which of the following are the parties that are normally involved in a wraparound mortgage?

A) Lender, Borrower, and Property Seller
B) Lender, Borrower, and Real Estate Agent
C) Lender, Borrower, and Title Company
D) Lender, Borrower, and Home Inspector

User Wes Winder
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Final answer:

In a wraparound mortgage, the parties involved are the lender, borrower, and property seller, where the buyer takes out a second mortgage to finance the purchase. Option A

Step-by-step explanation:

The parties that are normally involved in a wraparound mortgage are the Lender, Borrower, and Property Seller.

A wraparound mortgage is a type of creative financing where the buyer takes out a second mortgage to finance the purchase of a property. The existing mortgage is not paid off, but instead, the buyer makes payments to the original lender, who then passes a portion of the payment to the seller.

For example, let's say Bob is selling his house to Sarah. Sarah obtains a wraparound mortgage from a lender. The lender collects Sarah's payments and uses a part of that payment to pay off Bob's existing mortgage. The lender keeps the remaining amount as profit. Option A

User ISTB
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