Escrow & Title
A Massachusetts property sold at foreclosure has insufficient proceeds to pay both the first and second mortgage. The second mortgagee:
AIs paid first because they filed the foreclosure action
BReceives nothing if the proceeds are insufficient after paying the first mortgage✓ Correct
CShares equally with the first mortgagee
DCan demand the buyer pay the shortfall
Explanation
In a foreclosure sale, lien holders are paid in order of priority. If the sale proceeds are insufficient to cover both mortgages after paying the first, the second mortgagee receives nothing from the sale proceeds (though they may pursue a deficiency judgment).
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