Foreclosing Lender Receives Leftover Proceeds
This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”
Subject distribution
- Real Property1
Example wrong choices
21142_manna_bakery_surplus · REAL_PROPERTY · Choice BRuth should receive $3,700.
Why it's attractive
The owner does not receive the whole surplus while an unpaid valid lien remains.
Why it's wrong
The owner does not receive the whole surplus while an unpaid valid lien remains.
21142_manna_bakery_surplus · REAL_PROPERTY · Choice CPeter Bank should receive $3,700.
Why it's attractive
Peter Bank is first in line, but the stem caps its unpaid claim at $2,400.
Why it's wrong
Peter Bank is first in line, but the stem caps its unpaid claim at $2,400.
21142_manna_bakery_surplus · REAL_PROPERTY · Choice DPeter Bank should receive $2,400, and Lydia Finance should receive $1,300.
Why it's attractive
The stem says Lydia Finance was already satisfied before the surplus existed.
Why it's wrong
The stem says Lydia Finance was already satisfied before the surplus existed.
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