Solved

William Aitchison Had a First Mortgage on His House of $300,000

Question 46

Multiple Choice

William Aitchison had a first mortgage on his house of $300,000 with Bank A, a second mortgage of $200,000 with Bank B, and a third mortgage of $100,000 with Bank C. All of these mortgages were registered and in that order. Arthur missed his mortgage payments to Bank C. Which of the following statements is TRUE?


A) No bank alone can force the sale of the house
B) If the house is sold, Bank A must be paid in full before any other bank receives any money
C) If Bank C forces the sale of the house, Bank C will get its $100,000 before any other bank receives any money
D) If the house is sold Bank A will get 50% of the proceeds of the sale
E) If the house is sold Bank C will get 33% of the proceeds of the sale

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents