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

question 75

Essay

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? Explain.
b. Can First Bank recover the $20,000 from Pam? Explain.

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Definitions:

Retractors

Surgical instruments used to separate the edges of a surgical incision or wound, or to hold back underlying organs and tissues so that body parts under the incision may be accessed.

Probes

Instruments or devices designed to explore, investigate, or measure something, often used in science and medicine to examine body parts or detect the presence of substances.

Bandage Scissors

Specialized scissors with a blunt tip on one blade designed to safely cut bandages without injuring the skin.

Latex Allergy

An allergic reaction to natural rubber latex, characterized by symptoms ranging from skin redness and itching to more severe respiratory or systemic reactions.