John and Mary Rose Tessler Have Had Their Home Taken

John and Mary Rose Tessler have had their home taken in foreclosure. They owe $92,000 on their original mortgage and $8,000 on their second mortgage. A contractor they hired to add on a screened porch is owed $2,000, and the contractor has filed a lien. The lender has spent $4,000 in bringing the foreclosure suit. Suppose that the foreclosure sale brings $80,000. How will this amount be distributed?

A) $76,000 to the original mortgagor and $4,000 for costs
B) A split of the $80,000 on a pro rate basis between the costs, the original mortgagee, and the second mortgagee
C) A split on a pro rate basis among the contractor and the two mortgagees
D) The original mortgagee receives a portion of the $80,000 or 80,000/92,000