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On May 1, 2018, Cynthia Hendrix Bought Her Home and First

Question 114

Multiple Choice

On May 1, 2018, Cynthia Hendrix bought her home and First Bank recorded its mortgage. On June 24, 2020, Cynthia sold her home to Stanton Gulbrandsen for $250,000. At that time, Cynthia's mortgage was $225,000. Stanton assumed Cynthia's mortgage and gave Second Bank a second mortgage for $225,000. Second Bank did not record its mortgage. On October 12, 2020, Stanton sold the home to Derek Bolger for $275,000. Bolger took the property subject to the previous mortgages and executed a $275,000 mortgage to Third Bank. Third Bank recorded its mortgage on October 18, 2020. Third Bank knew of the Second Bank mortgage.
-A piggyback mortgage:


A) Involves borrowing money for the down payment on a purchase financed by another mortgage.
B) Is the same as a wrap-around mortgage.
C) Is the same as an Anaconda mortgage.
D) Is a dragnet mortgage.

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