Question

Holly Bing stops making her mortgage payments and her home sells at a foreclosure sale for $152,000. Holly owes $131,500 on her first mortgage and owes 31,000 on a second mortgage. How will the 152,000 be distributed? How will the money be distributed if the home sells for 175,000?

Answer 1

If Holly's home sells for $152,000, the distribution of the money would typically be as follows:
- The first mortgage of $131,500 would be paid off first.
- The remaining amount, $20,500, would go towards the second mortgage.

If the home sells for $175,000, the distribution would typically be:
- The first mortgage of $131,500 would still be paid off first.
- The remaining amount, $43,500, would go towards the second mortgage.