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