Answer Happy

Juan and Sarah both lost their jobs. They struggled for several months trying to keep up with their first and second mortgage payments, but were unable to make the payments. They then received a notice of default from the original mortgage holder, and, later, a notice that the house would be sold at auction After the auction Juan and Sarah: will receive the funds from the sale, but the mortgage holders can then sue Juan and Sarah for amounts owed to the mortgage holders. will receive only the deficiency. will only receive any funds that are left over after both mortgage holders are paid, will not receive any funds, even if the house sells for more than is owed,