Morey is liable to pay the balance mortgage money to BigBank.,
Explanation:
Mortgage value = $150,000 - $15,000 ( advance paid by Morey)
= $135,000
Defaulted on the loan, BigBank foreclosed and sold the house for $25,000 less than Morey owed. so the amount received by the bank
[tex]150,000-125,000=125,000[/tex] (sales value of the house)
Balance on loan outstanding = $135,000 - $125,000 = $10,000
= [tex]135,000-125,000=10,000[/tex]
So, Morey is liable to pay $10,000 for the balance mortgage money to BigBank.