In 2015, you take out a $100,000.00 home mortgage loan to purchase a house. The lender, First Bank, files its mortgage deed and perfects its security interest in your home. In 2016, you borrow $30,000.00 from Second Credit Union for emergency foundation repairs and give the lender a second mortgage against your home, which it immediately files. In 2017, you get sued and there is a judgment entered against you in the amount of $50,000.00. In 2018, you stop making payments on your home and it is foreclosed on. If your home is sold at auction for $120,000.00, who gets what? (Fill in the amounts - numbers only, no commas, decimals or $ signs) First Bank will recover Second Credit Union will recover Judgment creditor who sued you will get
In 2015, you take out a $100,000.00 home mortgage loan to purchase a house. The lender, First Bank, files its mortgage deed and perfects its security interest in your home. In 2016, you borrow $30,000.00 from Second Credit Union for emergency foundation repairs and give the lender a second mortgage against your home, which it immediately files. In 2017, you get sued and there is a judgment entered against you in the amount of $50,000.00. In 2018, you stop making payments on your home and it is foreclosed on. If your home is sold at auction for $120,000.00, who gets what? (Fill in the amounts - numbers only, no commas, decimals or $ signs) First Bank will recover Second Credit Union will recover Judgment creditor who sued you will get
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:In 2015, you take out a $100,000.00 home mortgage loan to purchase a house. The lender, First Bank, files its mortgage deed and perfects its security interest in your home.
In 2016, you borrow $30,000.00 from Second Credit Union for emergency foundation repairs and give the lender a second mortgage against your home, which it immediately files.
In 2017, you get sued and there is a judgment entered against you in the amount of $50,000.00.
In 2018, you stop making payments on your home and it is foreclosed on.
If your home is sold at auction for $120,000.00, who gets what? (Fill in the amounts - numbers only, no commas, decimals or $ signs)
First Bank will recover
Second Credit Union will recover
Judgment creditor who sued you will get
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