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Question
A senior mortgage holder is owed a mortgage balance of $140,000 and brings a foreclosure suit which includes all junior claimants in the suit. If the senior mortgage holder purchases the property for $140,000 at the foreclosure sale, what happens to the claim of the junior claimants?
A) The liens of the junior claimants are unaffected and the debt is due upon sale
B) The liens of the junior claimants are extinguished, but the debt owed to the junior claimants is unaffected
C) The liens of the junior claimants and the debt owed to them are extinguished
D) The liens of the junior claimants are unaffected, but the debt owed to them is extinguished
Answer
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