Cengage Advantage Books: Business Law Today, The Essentials 10th Edition by Roger LeRoy Miller

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Case Problem with Sample Answer-Deficiency Judgment. First Brownsville Co. executed a promissory note secured by a mortgage so that it could build and operate a mini-warehouse storage business. When First Brownsville defaulted on the loan, Beach Community Bank sought to foreclose on the property in Florida state court. The court determined that First Brownsville owed $1,224,475; entered judgment for Beach Community; and scheduled a foreclosure sale. Beach Community was the only interested bidder at the foreclosure sale, so it bought the property for a mere $1,300. Pursuant to Florida law, Beach Community then sought a deficiency judgment. At the hearing, expert testimony established that the property's fair market value had been $1,480,000 a year earlier, but that the property was worth only $770,000 at the time of the sale. What should be the amount of Beach Community's deficiency judgment? Why? [Beach Community Bank v. First Brownsville Co., 85 So.3d 1119 (Fla.App. 1st Dist. 2012)] (See page 482.)