A property is encumbered as follows: First mortgage,A: $250,000
Second mortgage,B: $40,000
Third mortgage,C: $10,000
How much can mortgagee B pay for the property at a foreclosure sale without having to raise additional funds?

Question

Quizplus · Accepted Answer

Mortgagee B can pay up to $290,000 for the property at a foreclosure sale without having to raise additional funds because this amount covers the first mortgage ($250,000) and their own second mortgage ($40,000), totaling $290,000.

A Property Is Encumbered as Follows: First Mortgage,A: $250,000