The proceeds of a foreclosure sale did not yield enough money to pay off the first mortgage holder. The mortgage holder
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The owner of a home with no liens obtained a home equity loan of $75,000, secured by his home. Several months later, he borrowed $15,000 and then $13,000, with each loan secured by a lien against his home. He then lost his job and failed to pay his past due property taxes of $7,500. As a result, his loan went into default and his home was foreclosed. Assuming that the liens for all three loans were recorded in a timely manner, what is the order of payoff to the lien holders? a) $7,500, $75,000, $15,000, $13,000 b) $7,500, $13,000, $15,000, $75,000 c) $75,000, $7,500, $15,000, $13,000 d) $75,000, $15,000, $13,000, $7,500
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Lito obtained a loan of P1,000,000 from Ferdie, payable within one year. To secure payment, Lito executed a chattel mortgage on a Toyota Avanza and a real estate mortgage on a 200-square meter piece of property. Lito's failure to pay led to the extrajudicial foreclosure of the mortgaged real property. Within a year from foreclosure, Lito tendered a manager's check to Ferdie to redeem the property. Ferdie refused to accept payment on the ground that he wanted payment in cash: the check does not qualify as legal tender and does not include the interest payment. Is Ferdie's refusal justified?
Derrick D.
Colleen and Bill have just purchased a house for $650,000, with the seller holding a second mortgage of $100,000. They promise to pay the seller $100,000 plus all accrued interest 5 years from now. The seller offers them three interest options on the second mortgage: (a) Simple interest at 6% per annum (b) 5.5% interest compounded monthly (c) 5.25% interest compounded continuously Which option is best? That is, which results in paying the least interest on the loan?
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