wraparound mortgage

wraparound mortgage
n.
A second mortgage combined with an older mortgage with a lower interest rate than the current one, which results in a new interest rate between the old and current mortgages; the borrower makes payments to the new lender, who in turn makes payments to the lender that provided the original mortgage.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


wraparound mortgage
USA
wraparound mortgage, Also known as a wrap.
A type of secondary financing for real estate acquisitions in which a seller offers a buyer a junior mortgage separate from senior mortgages that the real estate already secures. A seller accepts a promissory note secured by the property for the amount still due on the senior mortgage, plus another amount that can be as large as the remaining purchase money balance. The buyer pays the seller every month and the seller then pays the underlying mortgagee(s). If the new buyer defaults on its payments, the seller has a right to foreclose on the property.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • wraparound mortgage — A second mortgage that takes over the first. The first mortgage loan is not paid off. Instead, the borrower makes payments to the second mortgage lender for the debt service of both the first and second liens. The second lien holder then makes… …   Financial and business terms

  • Wraparound Mortgage — A type of loan that enables a borrower who is paying off an existing mortgage to obtain more financing from a second lender or seller. The new lender (typically a bank or the seller of the real property) assumes the payment of the existing… …   Investment dictionary

  • Wraparound mortgage — A wrap around mortgage is a form of secondary financing in which a seller extends to a purchaser a junior mortgage which wraps around and exists in addition to one or more superior mortgages. Under a wrap, a seller accepts a promissory note from… …   Wikipedia

  • wraparound mortgage — a mortgage, as a second mortgage, that includes payments on a previous mortgage that continues in effect. [1970 75] * * * …   Universalium

  • wraparound mortgage — A second mortgage which wraps around or exists in addition to a first or other mortgages. Form of secondary financing typically used on older properties having first mortgages with low interest rates in which a lender assumes the developer s… …   Black's law dictionary

  • wraparound mortgage — a mortgage, as a second mortgage, that includes payments on a previous mortgage that continues in effect. [1970 75] …   Useful english dictionary

  • wraparound mortgage — / ræpəraυnd ˌmɔ:gɪdʒ/ noun US a type of second mortgage where the borrower pays interest only to the second lender (who then pays the interest payments on the first mortgage to the first lender) …   Dictionary of banking and finance

  • Mortgage loan — Mortgage redirects here. For other uses, see Mortgage (disambiguation). Finance Financial markets …   Wikipedia

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”