Don borrows $90,000 to buy a home. His mortgage is with Western Bank. Don is unable to make his mortgage payments. Western forecloses on Don's house and sells it in a judicial sale. The bank gets $95,000 for the house. In this case, it:

Question

Quizplus · Accepted Answer

When a bank forecloses on a property and sells it for more than the amount owed on the mortgage, the surplus (in this case, the extra $5,000) must be returned to the borrower, which is Don in this scenario.

Don Borrows $90,000 to Buy a Home