James and Debra Reid purchased a home for $623,000 in January 2014. They put down $62,300 and financed the remainder with Fifth Third Bank. Fifth Third Bank recorded its mortgage on February 1, 2014. On March 31, 2014, the Reids purchased a swimming pool and the pool contractors, Cristoria Pools, financed the construction for $45.000. Cristoria recorded a second mortgage on the property on April
15, 2014. On December 15, 2014, the Reids sold their house to the Griffins for $720,000. The Griffins put $120,000 down and agreed to pay the Reids for the existing mortgage in wrap-around. The mortgage balance at the time of the sale was $619,000. The balance on the Cristoria mortgage was $42,000. On August 15, 2015, the Griffins defaulted on their payments. The Reids had already purchased another home and were unable to make the payments on the home. Fifth Third Bank foreclosed on the mortgage. ?Who has first priority on the sales proceeds after expenses are paid?
A)?Fifth Third Bank
B)?Cristoria Pools
C)?The Reids
D)?The Griffins
A
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In a troubled debt restructuring that involves only a modification of terms, if the amount to be repaid is greater than the current carrying value of the liability
A) no gain or loss would be recognized by the debtor. B) an ordinary gain would be recognized by the debtor. C) a prior period adjustment would be recognized by the debtor. D) an ordinary loss would be recognized by the debtor.
Which of the following is not an approach to making negotiations less visible?
A. Establish a reputation for cooperation. B. Be aware of time pressure. C. Establish "privacy" prior to the beginning of negotiations. D. Screen visibility during negotiations.
Which of the following statements regarding Arnold Palmer Hospital is FALSE?
A) The hospital uses a wide range of quality management techniques. B) The culture of quality at the hospital includes employees at all levels. C) The hospital scores very highly in national studies of patient satisfaction. D) The hospital's high quality is measured by low readmission rates, not patient satisfaction. E) The design of patient rooms, even wall colors, reflects the hospital's culture of quality.
Consider the data on Inventory for Blenders Over a 20-Day Period. Any time that ending inventory falls to 15 or below, an order is placed for 30 units of the product. The lead time for delivery varies and is shown in the column under Lead Time. If the ordering costs were $38 each time the product is ordered, what are the total ordering costs during the 20-day period?
A. $114
B. $228
C. $76
D. $182