ISM BUS 101 – John and Mary bought a new construction

John and Mary bought a “new construction” home in suburban Omaha in 2014. The purchase price was 450,000, which was a stretch for them. They had to put 45,000-all of their savings-down. But they were not worried, because john had a new will-paying job as executive with AgraCon, a major employer headquarted in Omaha. John’s job allowed Mary to stay home to care for the house and their three children. Although they had low credit, a mortgage broker at Bank of Omaha Nebraska Enterprises (Bone) convinced them to get a lower interest rate they could have Mary’s parents guaranty their mortgage loan with Bone. Bone recorded a $405,000 mortgage with Douglas County for the financing of the financing of the remainder of purchase price.A year after moving into their new home, John and Mary decided to have a cool computerized home automation system installed for $13,000, with $3000 down. THEY HAD PAID THEIR MORTGAGE LOAN DOWN BY $5,000 by then Omaha No-hands Opportunity homes (OHNO) sold and installed the system for them, recording a mechanics lien for the remaining $10,000 owed john and Mary financed the $3000 down payment through a home equity loan with secured home installation properties (SHIP), which recorded a second mortgage against the House.When AgraCon decided to move their corporate headquarters, john lost his job in a reduction in force (RIF). To be able to buy groceries, john and Mary stopped making their mortgage payments. After six months, John got a new job, which pays well, but the house was already in foreclosure. The real estate market had dropped, making the value of the home only $300,000Please respond to the following questions.To be enforceable, what process does bone need to go through with respect to the mortgage?Describe the foreclosure process. Providing details, what amount will Bone be able to obtain from john and Mary?If they can collect anything, describe how SHIP may be able to collect the amount owed to them.What about OHNO? Explain the process they needed to go through to protect their security interest. In the foreclosure process, how will they get paid, if at all?What about the guaranty by Mary’s parents? How does that come in to play?If they cannot stop the foreclosure, how might it be possible for john and Mary to get their house back?If John and Mary are left homeless, describe what, if any, federal law(s) may provide them with protection.What ethical concerns do you think are involved with the actions of John and Mary, Bone, OHNO and SHIP?a