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

In this scenario, the bank would typically use the proceeds from the sale to pay off the mortgage balance and associated costs of the sale. Any surplus would generally be returned to the borrower, Don, not kept by the bank or paid to the secretary of state, nor would it result in a mechanic's lien against Don. The options provided do not accurately describe the typical legal or financial procedures following a foreclosure sale where the sale amount exceeds the mortgage owed.

Don Borrows $90,000 to Buy a Home