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

question 58

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

---

Definitions:

Relaxation Training

A therapeutic technique aimed at teaching individuals methods to reduce stress, anxiety, and tension through practices like deep breathing, meditation, or progressive muscle relaxation.

Psychological

Pertaining to the mind or mental processes, often relating to behavior, emotions, and thought processes.

Hormonal Stress Responses

The activation of the body's endocrine system in response to stress, resulting in the release of hormones like cortisol and adrenaline.

Effective Therapy

Treatment that has been scientifically proven to yield significant and beneficial results in addressing a specific condition or illness.