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Suppose a borrower with two mortgages defaults. At the time of the default, the first lien has a balance of $200,000; the second lien has
Suppose a borrower with two mortgages defaults. At the time of the default, the first lien has a balance of $200,000; the second lien has a balance of $25,000. The borrower owes $5,000 in property taxes and $2,000 to a relative that lent the borrower money. The house sells for $215,000 in a foreclosure auction. How much of a deficiency will the second lien lender have?
$10,000
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$15,000
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$17,000
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$8,000
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