Holly bought a house for $200,000.She put down $40,000 in cash,and took out a $160,000 loan from the Midland Bank to cover the rest of the cost.However,Holly found that she could not make her mortgage payments.Midland Bank foreclosed on the mortgage,sold the house for $150,000,and told Holly that she was liable for the $10,000 difference between what she paid for it and what the bank sold it for.Did Midland act within its rights? Explain.

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The Answer of Holly bought a house for $200,000.She put down $40,000 in cash,and took out a $160,000 loan from the Midland Bank to cover the rest of the cost.However,Holly found that she could not make her mortgage payments.Midland Bank foreclosed on the mortgage,sold the house for $150,000,and told Holly that she was liable for the $10,000 difference between what she paid for it and what the bank sold it for.Did Midland act within its rights? Explain.

Holly Bought a House for $200,000