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18 February, 05:42

In the bankruptcy process, real estate is sold for a value higher than the amount owed on the mortgage for that real estate. How are the proceeds that exceed the mortgage used?

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  1. 18 February, 07:23
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    D) The proceeds that exceed the mortgage balance are used to pay all other claims and creditors.

    Explanation:

    If the borrower filed for a chapter 7 bankruptcy, and the proceeds from the sale of the real estate exceed the mortgage value, then all the excess amount is used to pay other creditors.

    Only if all the claims and creditors have been paid and there is still some money left, should that excess amount go to the borrower.
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