A borrower purchased a home for $300,000 with a 5% down payment. Since the LTV is higher than 80%, mortgage insurance is required. The mortgage insurance covers the first 25% of the loan. Now suppose the borrower defaults on the loan after paying it down to $275,000. The market value drops and is sold at a foreclosure sale for $200,000. After the insurance payment, how much is the net loss amount for the lender?

A) $1,250

B) $5,000

C) $0

D) $3,750