Final answer:
If a property with a first mortgage of $110,000 and a second mortgage of $20,000 sells at auction for $110,000, the investor with the second mortgage will receive nothing because the sale proceeds only cover the first mortgage.
Step-by-step explanation:
An investor who holds a second mortgage on a property stands in line after the holder of the first mortgage when it comes to foreclosure proceedings.
If the property sells at auction for $110,000 and there is a first mortgage of $110,000, the proceeds from the sale will first go towards paying off the first mortgage.
Assuming there are no other liens or costs that need to be covered, the investor with the second mortgage will unfortunately receive nothing because the sale amount is equal to the amount of the first mortgage.