A Wraparound Mortgage is a method of financing where a new mortgage includes both the unpaid principle from the first mortgage, and all additional sums advanced by the lender. Essentially the new lender refinances the borrower by lending an amount over the first loan amount, and combining two debts into a single obligation. The borrower pays the second financer, and they in turn pay the obligations of the first mortgage without assuming the liability.
WRAPAROUND MORTGAGE
