A bank took immediate possession of real property for non-payment of a mortgage installment on its due date.It is taking steps to have the property sold.The bank is aware that,due to poor market conditions,the amount of the mortgage is higher than the value of the property.Given these circumstances,which of the following provides a valid description of the most likely legal matters that will come before the courts?

Question

Quizplus · Accepted Answer

Foreclosure and deficiency is the most likely legal matter that will come before the courts in this scenario. Foreclosure is the legal process by which a lender takes possession of a property to recover the amount owed on a defaulted mortgage. The deficiency refers to the difference between the outstanding mortgage balance and the sale price of the property. In this case, since the mortgage amount is higher than the value of the property, it is likely that there will be a deficiency, which the lender may seek to recover through legal action. Therefore, foreclosure and deficiency is the most apt choice.

A Bank Took Immediate Possession of Real Property for Non-Payment