When a property is sold for $195,000, how much is left for the third mortgage holder given first and second mortgage claims?

To determine how much is left for the third mortgage holder after the property is sold for $195,000, it is essential to understand the hierarchy of mortgage claims. Typically, mortgages are paid off in order of their seniority. This means that the first mortgage is paid first, followed by the second mortgage, and any remaining amount, if available, goes to the third mortgage holder.

Assuming that the first and second mortgage claims total to $190,000, when the property is sold for $195,000, the total amount owed sums up to $190,000. This results in $5,000 remaining after covering the first and second mortgages.

This detail directly leads to the conclusion that the third mortgage holder would receive the remaining $5,000. The correct answer reflects this calculation, as there is indeed $5,000 available for the third mortgage holder after fulfilling the obligations of the first and second mortgages.