Fran Martin Obtains a Non-Recourse Mortgage Loan for $500,000

Multiple Choice

Fran Martin obtains a non-recourse mortgage loan for $500,000. one year later, when the outstanding balance of the mortgage is $490,000, Martin cannot make his mortgage Payments and defaults on the loan. The lender forecloses on the loan and sells the house For $315,000. What amount is the lender entitled to claim from Martin?

A) $0.
B) $175,000.
C) $185,000.