Definitions for "WRAP-AROUND MORTGAGE"
Related Terms:
Wrap around mortgage, Junior mortgage, All-inclusive trust deed, Wraparound mortgage, Second mortgage, Redemption, Subordinate financing, Secondary financing, Discharge of mortgage, Assumable, Satisfaction of mortgage, Open-end mortgage, Due-on-sale-clause, Assumable loan, Remortgage, Assumable mortgage, Refinance, Refinancing, Redemption, Open end mortgage, Closed-end mortgage, Assumption clause, Re-mortgage, Assumption of mortgage, Cash-out refinance, Due-on-sale clause, Cash out refinance, First mortgage, Open mortgage, Wraparound loan, Ram, Remortgaging, Non-assumption clause, Cash out, Mortgagee, Mortgage acceleration clause, Due on sale clause, Reverse annuity mortgage, Mortgage servicing, Assumption, Submortgage, Due-on-sale provision, Equity mortgage, Assumption of a mortgage, Participation mortgage, Mortgage lender, Cash-out refinancing, Capital raising, Assumability, Mortgagor
a loan transaction in which the lender assumes
a new mortgage which literally "wraps" around the old mortgage
a sometimes-used vehicle to provide secondary or additional financing
Mortgage given to a seller wherein the buyer will make the amount of existing payments on property to the seller along with payments on the amount of the selling price that is in excess of the mortgage amount.
The wrap-around mortgage is a purchase money mortgage which is subordinate to, but yet includes within its payment structure the encumbrance or encumbrances to which it is subordinated.
A mortgage on a property that already has a mortgage. The new lender assumes responsibility for payment obligations on the old mortgage.
A form of refinancing. (See Refinance.) When the borrower already owns a property and borrows more money, the lender combines the amount still owed on the home's original loan (see First Mortgage) with the new amount to form one wrap-around mortgage.
Same as an "all inclusive mortgage": One incorporating the balance due under a prior mortgage.
A junior lien which is written for the entire mortgage indebtedness of the borrower; the wrap-around lender assumes the responsibility for the original lien, and the borrower thereby makes only one monthly payment ( to the wrap-around lender).
A second mortgage which is subordinate to but includes the face value of the first mortgage. Back to the Top
A second or junior mortgage with a face value of both the amount it secures and the balance due under the first mortgage. The mortgage under the wrap-around collects a payment based on its face value and then pays the first mortgagee.
A second mortgage which is subordinate to but includes the face value of the first mortgage. Select Another Letter Select Another Letter Select Another Letter
A method of refinancing in which the new mortgage is placed in a secondary or subordinate position. In essence, it is an additional mortgage in which another lender refinances a borrower by lending an amount over the existing first mortgage amount, without cashing out or distributing the existence of the first mortgage.
A method of financing in which a second lender assumes payment of the present mortgage and gives the mortgagor an increased mortgage at a higher interest rate.
(Also called the all-inclusive mortgage or all inclusive trust deed.) The wrap-around mortgage is a purchase money mortgage which is subordinate to, but yet includes the encumbrance or encumbrances to which it is subordinated.
Method of financing in which a new mortgage is placed in a secondary position; an all –inclusive mortgage.
Also known as an AITD; All Inclusive Trust Deed, Hold Harmless or Overriding Trust Deed; it is a junior lien that is subordinate to the lien to which it is subordinated. They are commonly used with a land contract of sale.