Jane, an architectural historian, bought a house in 1979 from William. She paid him $ 50,000$ in cash, and the balance of the $ 150,000$ sale price came from the proceeds of a mortgage she took out with State National Bank. The mortgage was recorded. In 1987, Jane borrowed $ 5,000$ from the Home Finance Company, using her house as security. Home Finance recorded its mortgage on the property. In 1996, Jane had an architect friend design an addition to her house. She borrowed $ 40,000$ from Property Equity Lenders, Inc. to pay for this construction. Property Equity did not record the mortgage Jane gave it to secure this debt. In 2003, Jane lost her job and was unable to make payments on some of her obligations. She made the payments on the State National mortgage, but was unable to make any payments on either the Home Finance or Property Equity Lenders mortgages. Home Finance filed foreclosure of its mortgage. At the foreclosure sale, Susan bought the property. After acquiring the property at the sale, what is Susan's obligation toward the holders of the other two mortgages, State National Bank and Property Equity Lenders, Inc.?
A. She takes the property subject to both mortgages.
B. She takes the property subject to neither mortgage.
C. She takes the property subject to Property Equity Lenders's mortgage, but not subject to State National Bank's mortgage.
D. She takes the property subject to State National Bank's mortgage, but not subject to Property Equity Lenders's mortgage. 
Choose A, B, C or D as your solution.
D