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

question 79

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.There is a default on the mortgage.When First Bank forecloses, the value of the property has declined and it 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:

Classical Conditioning

A learning approach whereby two stimuli are consistently associated together; the second stimulus initially generates a response which ultimately is generated by the first stimulus alone.

Cognitive Development

The process through which individuals acquire and evolve in their problem-solving abilities, memory, language, and understanding of the world.

Intelligence Testing

The assessment and measurement of an individual's intellectual capabilities and potential.

Theories of Personality

Conceptual frameworks used to understand, describe, and predict how people's thoughts, feelings, and behaviors are influenced by their individual characteristics.