Escrow & Title
A West Virginia property has a first deed of trust of $150,000 and a second deed of trust of $50,000. The property forecloses on the first deed of trust and sells for $140,000. The second deed of trust holder receives:
A$50,000 from the proceeds
BNothing — the second lien is wiped out in the foreclosure of the senior lien✓ Correct
C$10,000 as the junior creditor
DHalf of the proceeds
Explanation
When a senior lien (first deed of trust) is foreclosed and the proceeds do not cover all debt, junior lienholders receive only what remains after the senior lien is satisfied. If the sale price ($140,000) does not cover the first deed of trust ($150,000), the second lienholder receives nothing.
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