What is the meaning of WRAPAROUND?

WRAPAROUND is the debt secured includes an existing debt already on the property. The payments made to the holder of the wraparound include payments due on the existing loan and the holder must forward the appropriate portion of each payment to the existing noteholder. Often used to avoid a PREPAYMENT PENALTY or a DUE ON SALE CLAUSE. Can refer to a wraparound DEED OF TRUST or CONTRACT FOR DEED.

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APABarry Goldsmith. (2010). wraparound. Retrieved September 23, 2026, from http://smartdefine.org/wraparound/definitions/1166624
ChicagoBarry Goldsmith. 2010. "wraparound" http://smartdefine.org/wraparound/definitions/1166624 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, wraparound, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/wraparound/definitions/1166624>.
MLABarry Goldsmith. "wraparound" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/wraparound/definitions/1166624>
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