Answer: Wraparound Mortgage
Explanation: Wraparound Mortgage are a type of junior loan usually used to refinance a property. The amount on the existing mortgage is summed up with other additional purchase value and loaned out to the buyer. Wraparound mortgage often arises when existing cannot be settled or paid off. The seller is issued a legal 'I Owe You' (IOU) detailing the total amount called a Promissory Note.
