Essay
John sells to Beth property which has a $150,000 mortgage in favor of Avco Bank. Beth purchases the property subject to the mortgage. The value of the property declines and there is a default on the mortgage. When Avco Bank forecloses, the property sells for only $130,000.
a. Can Avco Bank recover the $20,000 balance from Beth ? Explain.
b. Can Avco Bank recover the $20,000 from John ? Explain.
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a. No, Beth purchased the property "subj...View Answer
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