If there is only $600,000 left for distribution to creditors, what happens to Cristoria's loan?

Question

Quizplus · Accepted Answer

Cristoria will have to pursue a personal judgment against the Reids because, typically, if the proceeds from a foreclosure sale are insufficient to cover all debts, creditors like Cristoria, who may hold secondary positions or unsecured loans, must seek personal judgments against the borrowers (the Reids in this case) to recover the remaining debt.

If There Is Only $600,000 Left for Distribution to Creditors