A Utah property has both a first mortgage and a second mortgage. If the first mortgage is foreclosed, what happens to the second mortgage?
Correct Answer
B) The second mortgage is extinguished, but the borrower still owes the debt
When a senior (first) mortgage is foreclosed in Utah, junior liens including second mortgages are extinguished from the title. However, the borrower's personal obligation on the second mortgage note remains — the second mortgage holder may pursue a deficiency judgment if permitted by law.
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