A wraparound mortgage, more commonly known as a "wrap", is a form of secondary financing for the purchase of real property.
Because wraps are a form of seller financing, they have the effect of lowering the barriers to ownership of real property; they also can expedite the process of purchasing a home.
It is appropriate to note that the bank or other mortgagees may elect to continue to receive interest payments even in the case where they become aware of the transfer of ownership.
The standard to qualify for a wrap depends on each specific seller, which creates the potential for a wider buyer pool.
Sellers must ensure compliance with the terms of their original loan and they continue to bear full responsibility for making payments on their mortgage.