CRESTICO - Question of the day - 03-24-2025

Question of the day. Question number 1. Borrower defaulted on his home mortgage loan payments, and the lender obtained a court order to foreclose on the property. At the foreclosure sale, the property sold for $164,000. The unpaid balance on the loan at the time of foreclosure was $178,000. What must the lender do to recover the $14,000 that the borrower still owes? A, sue for damages. B. Seek a deficiency judgment. C. Sue for specific performance. D. Seek a judgment by default. The answer is B. Seek a deficiency judgment. A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note or loan in full. Question number 2. Mr. Owner enters into an exclusive listing with Broker X. One week later, Broker X brings in a full-price offer, but Mr. Owner refuses the offer. Seeking an action of specific performance would be an option for: A. The buyer. B. The broker. C. Neither the buyer nor the broker. D. Both the buyer and the broker. The answer is C. Neither the buyer nor the broker. Specific performance is a court action that compels a specific party to carry out the terms of a contract. In this question, the offer was refused, so there was never a contract between the buyer and seller. Since no contract ever existed, specific performance is not an option.