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Metro Finance Co

Question 52

Multiple Choice

Metro Finance Co. lent $300,000 to Jeff Sahara with a mortgage on his condo as security. Sahara defaulted, owing $270,000. The fair market value of the condo was then $250,000. Which of the following, if any, is TRUE?


A) If Metro exercises its power of sale under the mortgage, assuming Metro obtained $250,000, it could sue Sahara for the deficiency
B) If Metro exercises its power of sale under the mortgage, assuming Metro obtained $250,000, it could not sue Sahara for the deficiency
C) If Metro forecloses on the mortgage and the house sells for more than the amount owing, it can keep the excess
D) If Metro forecloses on the mortgage and the house sells for less than the amount owing, it cannot sue for the unpaid amount
E) A, C and D

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