First State Bank holds a mortgage on Gigi's property. Gigi defaults on the debt. The bank forecloses. If the proceeds of the foreclosure sale are insuf?ficient to pay the costs of the sale and the debt, the bank can

Question

Quizplus · Accepted Answer

If the proceeds of the foreclosure sale are insufficient to cover the debt and costs, the bank may obtain a deficiency judgment against the borrower (in this case, Gigi). This allows the bank to seek payment of the remaining debt from the borrower's other assets, such as bank accounts or wages.

First State Bank Holds a Mortgage on Gigi's Property