Wraparound mortgage

The entire mortgage payment of the borrower is made to the lender of your wraparound mortgage, and the wraparound mortgage person will in turn send the payments for your first mortgage to your primary mortgage lender.

It is a financing technique in which involves the buyer with the amount of the remaining balance on seller's mortgage with an additional amount. And the wraparound also called the trust deed. Actually in this kind of loan the borrower makes the payment on both loans to the wraparound lender in which turn makes payments on the original senior mortgage.