Asked by Kayla Cohen on Jul 23, 2024
Verified
Morey purchased a house for $150,000,paying $15,000 in cash and giving a mortgage to BigBank for the balance.When Morey defaulted on the loan,BigBank foreclosed and sold the house for $25,000 less than Morey owed.Morey believed he no longer owed BigBank any money.Discuss the case.
Defaulted
Refers to failing to fulfill a legal obligation, especially failure to pay a debt or appear in court as required.
Foreclosed
The legal process by which a lender takes possession of a property due to the borrower's failure to pay the mortgage.
- Evaluate the legal principles and consequences of mortgage foreclosure, including defenses against foreclosure and remaining liabilities after foreclosure.
Verified Answer
BG
Blessie Grace RosalJul 25, 2024
Final Answer :
Morey still owes money to BigBank.If property must be sold to satisfy a secured debt and the sale of property does not satisfy the whole debt,the debtor still owes the balance amount (unless it is a nonrecourse mortgage).
Learning Objectives
- Evaluate the legal principles and consequences of mortgage foreclosure, including defenses against foreclosure and remaining liabilities after foreclosure.