Finance

A Wyoming property worth $400,000 is subject to a first mortgage of $200,000 and a second mortgage of $80,000. If the property sells at a foreclosure sale for $260,000, how much does the second mortgage lender receive?

A$80,000
B$60,000✓ Correct
C$0
D$40,000

Explanation

In foreclosure, liens are paid in priority order. First mortgage: $200,000.

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