If a property with a first mortgage of $130,000, a second mortgage of $30,000, and a third mortgage of $15,000 sells for $165,000, how much does the holder of the second mortgage receive?

To determine how much the holder of the second mortgage receives, we need to analyze the total amount of liens on the property and the selling price. The total liens amount to $130,000 for the first mortgage, $30,000 for the second mortgage, and $15,000 for the third mortgage, totaling $175,000.

When the property sells for $165,000, there isn't enough money to pay off all the lien holders in full, as the total owed ($175,000) exceeds the selling price. In this scenario, the order of payment is crucial; lien holders are typically paid in the hierarchy of their mortgages.

The first mortgage of $130,000 is paid off first. After this payment, there remains $165,000 - $130,000 = $35,000 available to pay the second mortgage. The second mortgage holder is next in line and is owed $30,000. Since there are sufficient funds remaining after paying the first mortgage (having $35,000 available), the second mortgage holder will receive their full $30,000.

The third mortgage would only be paid after the second mortgage is satisfied, but in this case, the remaining amount after paying off the second mortgage will leave only $5