Andrea, an architectural historian, bought a house, financin…
Questions
Andreа, аn аrchitectural histоrian, bоught a hоuse, financing $150,000 of the purchase price with a loan from A1 Bank, secured by a mortgage on the property. A1 Bank recorded its mortgage. Ten years later, Andrea borrowed $5,000 from Frank’s Finance Company, using the house as security. Frank’s Finance Company recorded its mortgage on the property. Five years later, Andrea obtained a $40,000 mortgage from Sue’s Savings and Loan Association to pay for an addition to the house. Sue’s Savings and Loan Association did not record its mortgage. Subsequently, Andrea lost her job and was unable to make payments on either Frank’s Finance Company or Sue’s Savings and Loan Association mortgages. Frank’s Finance Company filed foreclosure of its mortgage and joined Sue’s Savings and Loan Association in the action, and the house was sold to a buyer at the foreclosure sale.After acquiring the property at the sale, what is the buyer’s obligation regarding A1 Bank’s and Sue’s Savings and Loan Association’s mortgages?