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as your real-estate exam remember go to prep agent comm a wraparound mortgage is a type of seller financing whereby the buyer executes an installment note which wraps around an existing mortgage still held by the seller sounds confusing doesn't it let's use an example and in the spirit of keeping things simple I'm not going to include things like down payments commissions and other expenses involved in a typical transaction let's say the buyer bill wants to buy a home for seller Sam the two agree that the house is worth $200,000 Sam is an existing mortgage has 40 thousand dollars left on it so normally what would happen is Bill would go to the bank and say I need $200,000 so bill says I need $200,000 so he can buy this house from Sam Sam would take that money and pay off his mortgage and then move on with his life but let's say there's an issue for venting bill from getting that money from the bank Sam can actually lend Bill this money Sam can say I like you and I want to sell my hous...