Before the real estate market took a serious downturn,Prime Lenders Inc.had entered into a high ratio mortgage agreement with Juha Dally.Dally ceased making mortgage payments six months ago,and Prime now wants to commence foreclosure proceedings,but it appears that the proceeds of the sale will not be sufficient to pay the outstanding debt.Which of the following statements describes Prime's legal position?
A) Prime cannot sue Dally for the shortfall if it elects to proceed with foreclosure.
B) Prime cannot sell the property if Dally is still using it as her primary residence.
C) Prime cannot sell the property if it will result in a shortfall.
D) Prime can sue Dally for the shortfall between the outstanding mortgage and proceeds from the sale.
Correct Answer:
Verified
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