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​ "A" Borrows $50,000

Question 33

Multiple Choice

​ "A" borrows $50,000.00 from the bank and pledges real property as security. After the loan, "A" sells the property to "B," who buys subject to the mortgage. "B" then defaults on the mortgage loan. Under the circumstances, which of the following statements are true?


A) bank may foreclose on the property
B) bank can sue "A" to recover debt
C) bank cannot sue "B" to recover debt
D) "A" cannot sue "B" for reimbursement if "A" pays the bank
E) all of the above
F) none of the above

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