A bank holds a mortgage on property bought by a widower who later transfers the property to his daughter. The mortgage is recorded before the widower’s transfer. When the loan goes into default, may the bank foreclose?

• A. Yes, because the bank recorded its mortgage.
• B. Yes, because the daughter received the property as a gift.
• C. No, because the daughter took the property subject to the mortgage.
• D. No, because the bank waived the mortgage.

Answer: (A)