Finance
Under Wisconsin law, a junior mortgage lien holder (2nd mortgage) in a foreclosure proceeding:
AGets paid before the first mortgage holder
BGets paid after the first mortgage from any remaining proceeds✓ Correct
CHas equal priority with the first mortgage
DAlways loses their lien in foreclosure
Explanation
In a Wisconsin foreclosure, lien priority determines payment order. A first mortgage is paid first; junior lien holders receive proceeds from any remaining equity after senior liens are satisfied.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
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