Detailed Answer
(d) Dix’s second mortgage on Gilmore’s property will
allow Dix to claim a security interest subordinate to FCA’s first
mortgage security interest. Dix’s failure to record the second
mortgage will not affect their right to successfully enforce the
mortgage against Gilmore. Therefore, answer (b) is incorrect.
Answer (a) is incorrect because Dix would be entitled to receive
mortgage foreclosure sale proceeds if such proceeds were in excess
of the amount owed to FCA. Answer (c) is incorrect because
FCA’s first mortgage must be fully satisfied before any
payments can be made to Dix.