A obtained a loan from B secured by a mortgage over his house & lot. B failed to pay hence, A foreclosed the mortgage but it was sold for less than the amount of the obligation. Can B recover the deficiency?

Question

Quizplus · Accepted Answer

A can recover the deficiency because the general rule in mortgage foreclosures is that if the proceeds from the sale of the mortgaged property are insufficient to cover the debt, the mortgagee (A in this case) is entitled to claim the deficiency from the mortgagor (B). There is no prohibition in the law against the recovery of any deficiency remaining after the foreclosure and sale of the mortgaged property.

A Obtained a Loan from B Secured by a Mortgage