Ann Sells to Bob Property, Which Has a $50,000 Mortgage

Essay

Ann sells to Bob property, which has a $50,000 mortgage in favor of First Bank. Bob 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 Bob? Explain.
b. Can First Bank recover the $20,000 from Ann? Explain.
c. What rights does Bob have during and after the foreclosure?
_{No, Bob purchased the property "subject to" the mortgage. This means that the}