If a Property Encumbered by a Mortgage Is Sold at a Foreclosure

question 33

True/False

If a property encumbered by a mortgage is sold at a foreclosure sale for an amount less than the value of the mortgage, the mortgagor is not obligated to pay the mortgagee the remaining balance.

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Definitions:

Winding-Up Stage

The process of settling the affairs of a company, involving the liquidation of assets and distribution of proceeds to creditors and shareholders, as part of the company's dissolution.

Termination

The action of bringing or coming to an end, which can refer to contracts, employment, negotiations, and other engagements or agreements.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

General Partner

is a member of a partnership who has unlimited liability for the debts of the partnership and takes part in the management of the business.