In a __________ financing transaction,the second lender lends the owner the additional funds and agrees to take over the servicing of the first loan.
A) permanent
B) wraparound
C) mortgage
D) deed of trust

Question

Quizplus · Accepted Answer

In a wraparound financing transaction, the second lender lends the owner additional funds and agrees to take over the servicing of the first loan. This means that the borrower makes one monthly payment to the second lender, who in turn pays the first lender. The wraparound loan "wraps around" the existing mortgage or deed of trust.

In a __________ Financing Transaction,the Second Lender Lends the Owner