Question

Victoria stopped paying the recourse mortgage on her condominium at a time when she still owed $200,000. She had originally purchased the condominium for ________?

1) $150,000
2) $250,000
3) $300,000
4) $350,000

Answer 1

Victoria originally purchased her condominium for $300,000 as suggested by the context of the question and the fact that she owes more than the other options on her recourse mortgage.

Step-by-step explanation:

The correct answer would be $300,000. This is determined by the context provided in the question and the additional information indicating scenarios where property values have decreased since purchase but the amount owed on the mortgage is given.

In the present scenario, Victoria owes more than any of the other listed purchase prices except for $300,000. Since we're dealing with a recourse mortgage, where the lender can pursue other assets if the property doesn't cover the owed amount, it is implied that the property's value has decreased, leaving Victoria with an underwater mortgage.

Therefore the correct answer is 3) $300,000.