Wesley buys a house for $1, 000, 000.He puts $400, 000 down and borrows $600, 000 from a bank, which takes a mortgage on the property to secure the loan.Wesley defaults, and when the bank forecloses on the property, it is worth only $500, 000.There is a shortage of 100, 000, as the foreclosure sale price was $500, 000.The bank brings a legal action against Wesley.Which of the following court doctrines can help the bank recover the shortage from Wesley?

Question

Quizplus · Accepted Answer

The court doctrine that can help the bank recover the shortage from Wesley is deficiency judgment. This allows the bank to seek a judgment against Wesley for the remaining amount still owed after the foreclosure sale, which in this case is $100,000. The other options, such as right of redemption, lien release, and garnishment, do not apply in this situation.

Wesley Buys a House for $1, 000, 000