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A home owner defaults and he has three mortgages on the house. At the time of the default, the first lien has a balance of
A home owner defaults and he has three mortgages on the house.
At the time of the default,
the first lien has a balance of $
the second lien has a balance of $
the third lien has a balance of $
and he also owes $ in property taxes.
The recovery rate for the third lien holder equals
The house price is sold for $ in the foreclosure auction.
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