Suppose there is a $150,000 1st purchase mortgage on a residential property that is delinquent, and a $60,000 2nd mortgage, obtained three years after the house was purchased, that is also delinquent. If the 1st mortgage forecloses, and the 1st mortgage holder wins the bidding for a price of $140,000 in the foreclosure sale, then

Question 15 options:

the 2nd mortgage lender loses their lien on the property, and is no longer owed $60,000 by the previous homeowner

the 2nd mortgage lender loses their lien on the property, and is still owed $60,000 by the previous homeowner

the 2nd mortgage lender retains their lien on the property, and is still owed $60,000 by the previous homeowner '

the 2nd mortgage lender retains their lien on the property, and is now owed $60,000 by the 1st mortgage bank

the 2nd mortgage lender takes ownership of the property, and must pay the 1st mortgage bank $140,000