What is the maximum amount received by the holder of the second mortgage in a property with first, second, and third mortgages totaling $195,000 when sold?

To determine the maximum amount received by the holder of the second mortgage when a property with multiple mortgages is sold, it's essential to understand the order of claim on the proceeds from the sale of the property. In a scenario where there are first, second, and third mortgages, the lender holding the first mortgage gets paid first from any sale proceeds. This amount is then used to settle the debts of any subordinate mortgages, such as the second and third mortgages.

In this case, the total amount of the first, second, and third mortgages is $195,000. The first mortgage holder has priority and is paid off before any remaining funds are distributed to the second mortgage holder. The amount that the second mortgage holder can receive is contingent upon the sale value of the property exceeding the amount owed on the first mortgage.

Assuming the first mortgage consumes a substantial portion of the sale proceeds, the maximum amount available for the second mortgage holder is what's left after settling with the first mortgage. Based on the context given, if $15,000 remains after the first mortgage has been paid off, this is the maximum that the holder of the second mortgage can expect to receive.

Thus, the maximum potential distribution to the second mortgage holder being $15,000 aligns with the