If the holder of the third mortgage receives $5,000 after a property sale, what can be inferred about the total sale price in relation to the mortgage amounts?

To evaluate the situation of the third mortgage holder receiving $5,000 after the property sale, we need to consider the hierarchical structure of mortgages on a property. Each mortgage has a priority level that dictates the order in which creditors are paid out once a property is sold.

In this case, if the third mortgage holder received $5,000, it indicates that the first and second mortgage holders were paid off fully prior to this distribution. If the total sum received by the third mortgage holder is $5,000, this amount came from the remaining funds available after satisfying the higher priority mortgages.

Assuming that the total amount owed on the first and second mortgages is significant, the sale price must be below a certain threshold to leave enough remaining for the third mortgage holder—in this case, indicating a sale price that is under $195,000. This threshold is contingent on the total amount of the first and second mortgages being at least $195,000. If the total sale price were to rise above this amount, it would allow for a greater distribution to the higher priority mortgages, potentially leaving the third mortgage holder with little to nothing.

Hence, inferring from the given situation that the third mortgage holder received $5,000, it is accurate to conclude