In a Deed of Trust Transaction,when a Trustee Sells the Property

question 32

Multiple Choice

In a deed of trust transaction,when a trustee sells the property and the proceeds generate a deficiency:

• A)the borrower is relieved of all obligations to the lender.
• B)the lender may sue the borrower on the debt and recover a judgment.
• C)the lender may sue the trustee.
• D)the trustee may sue the borrower.

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Definitions:

Extract

To remove or take out something, often using effort or force, particularly from a complex mixture or compound.

Firm Represented

Describes a scenario in which a type of business entity is depicted or acted on behalf of, in various contexts.

Optimal Extraction Level

The point at which the marginal cost of extracting a resource (e.g., minerals, oil) equals the marginal revenue, ensuring the most efficient allocation of resources.

Nonrenewable Resource

A natural resource that cannot be replaced or replenished once it is used, such as oil, natural gas, and coal.