Question: 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

$15,000

$17,000

$8,000

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