Bob Borrowed $200,000 from ABC Bank to Purchase His Residential

question 38

Multiple Choice

Bob borrowed $200,000 from ABC Bank to purchase his residential house.A mortgage was used as the financing vehicle.Several years later Bob encountered financial difficulties.He did not pay his mortgage payments for 4 months and the bank foreclosed.At that time,the remaining loan balance was $170,000.Bob had not maintained the property well,and the winning bid at the foreclosure auction sale was only $150,000.Is Bob liable for the $20,000 deficiency that has resulted (using the majority rule) ?

• A)No,because the property was his residence.
• B)No,because there is no guarantor with secondary liability involved in this transaction.
• C)Yes,because the proceeds of sale did not satisfy the remaining loan balance.
• D)Yes,because there is no surety or guarantor involved in this transaction.

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