Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank.Rob purchases the property subject to the mortgage.The value of the property declines and there is a default on the mortgage.When First Bank forecloses,the property sells for only $30,000.
a.Can First Bank recover the $20,000 balance from Rob?
b.Can First Bank recover the $20,000 from Pam?

Question

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The Answer of Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank.Rob purchases the property subject to the mortgage.The value of the property declines and there is a default on the mortgage.When First Bank forecloses,the property sells for only $30,000.
a.Can First Bank recover the $20,000 balance from Rob?
b.Can First Bank recover the $20,000 from Pam?

Pam Sells to Rob Property Which Has a $50,000 Mortgage