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In July 2020, David Ushery bought a house in Bergen County, New Jersey for $800,000 and obtained a mortgage for 80% of the value of
In July 2020, David Ushery bought a house in Bergen County, New Jersey for $800,000 and obtained a mortgage for 80% of the value of the home (i.e., $640,000) from Sue Simons to finance the purchase of the property. Sue immediately filed the mortgage with the county records office in Bergen County. In order to finance a large remodeling project at the property in January 2022, David took out a second mortgage in the amount of $100,000 from Chuck Scarborough. Chuck immediately filed the mortgage with the county records office in Bergen County. The remodel ended up costing more than expected, and David was unable to pay his contractor, Janice Huff, in full, so she filed a mechanic's lien for $50,000 against the property in March 2022. Assuming that the current balance of the first mortgage is $600,000 and the balance of the second mortgage is $100,000. How much would the property have to be worth for David to sell it, pay all his secured creditors, and still make a profit on his purchase of the house?
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