A Nebraska Bar Exam essay presents a fact pattern involving a mortgagor who defaulted. The lender wants to foreclose, but a junior lienholder was not notified. What is the consequence for the junior lienholder?
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A
The junior lienholder's interest survives the foreclosure because failure to join a necessary party preserves that party's rights against the property
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B
The junior lienholder's interest is extinguished because all encumbrances recorded after the senior mortgage are automatically terminated upon foreclosure
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C
The junior lienholder may redeem the property after foreclosure by paying the full amount owed to the senior lender plus costs
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D
The foreclosure sale proceeds are distributed pro rata among all lienholders regardless of notice or priority