Are CFDs And Wraps A Form Of PMM?
As Jfmlv1950 pointed out to me, "A CFD actually is a form of wrap (AITD)."
Since that is the case, is it correct to say that a CFD and a wrap (AITD) are both actually a form of Purchase Money Mortgage?
If not, why? It would seem like it is the same thing because all a PMM seems to be is the seller financing the buyer.
The only way I can see why a CFD and Wrap wouldn't be considered a form of PMM is because a PMM ONLY has to do with the seller financing the down payment as opposed to CFDs and Wraps where the seller ONLY finances the unpaid balance of the purchase price. (Am I correct in assuming that PMMs only have to do with financing the down payment?)
Therefor as of now, my knowledge is that in CFDs and Wraps, the seller finances everything except for the down payment. And, in PMMs, the seller finances only the down payment. If this isn't true, then what is it that seperates CFDs and Wraps from PMMS?
Thank you in advance,
Derek
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