wraparound mortgage

English

Noun

wraparound mortgage (plural wraparound mortgages)

1. A form of mortgage in which the seller of a property extends to the buyer a junior mortgage which exists in addition to any superior mortgages already secured on the property. The seller accepts a secured promissory note from the buyer for the amount due on the underlying mortgage plus an amount up to the remaining purchase-money balance.

Synonyms

• wrap
• wraparound