On June 10, 1990, Bond sold real property to Edwards for $100,000. Edwards assumed the $80,000 recorded mortgage Bond had previously given to Fair Bank and gave a $20,000 purchase money mortgage to Heath Finance. Heath did not record this mortgage. On December 15, 1991, Edwards sold the property to Ivor for $115,000. Ivor bought the property subject to the Fair mortgage but did not know about the Heath mortgage. Ivor borrowed $50,000 from Knox Bank and gave Knox a mortgage on the property. Knox knew of the unrecorded Heath mortgage when its mortgage was recorded. Ivor, Edwards, and Bond defaulted on the mortgages. Fair, Heath, and Knox foreclosed and the property was sold at a judicial foreclosure sale for $60,000. At the time of the sale, the outstanding balance of principal and accrued interest on the Fair mortgage was $75,000. The Heath mortgage balance was $18,000 and the Knox mortgage was $47,500.

Fair, Heath, and Knox all claim that their mortgages have priority and should be satisfied first from the sale proceeds. Bond, Edwards and Ivor all claim that they are not liable for any deficiency resulting from the sale.

The above transactions took place in a jurisdiction that has a notice-race recording statute and allows foreclosure deficiency judgments.

Determine whether Ivor would be liable to pay a mortgage foreclosure deficiency judgment on the Fair Bank mortgage. If Ivor would be held liable, select from the list below the reason for Ivor's liability. If you determine that there is no liability, indicate (D).

Answer: Not Liable.