Finance
In Missouri, when a borrower takes out a second mortgage (home equity loan), in foreclosure proceedings the second mortgage:
AHas priority over the first mortgage
BIs subordinate to the first mortgage and is paid only after the first mortgage is satisfied✓ Correct
CIs treated equally with the first mortgage
DIs automatically forgiven
Explanation
In Missouri, liens are prioritized by the date of recording (first recorded = first priority). A second mortgage is subordinate to the first mortgage and is only paid from foreclosure proceeds after the first mortgage is satisfied.
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