Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a borrower defaults on a mortgage loan that contains an exculpatory clause and the lender receives less than the amount owed on the mortgage

If a borrower defaults on a mortgage loan that contains an exculpatory clause and the lender receives less than the amount owed on the mortgage when the property is sold in foreclosure, the lender

a. can take legal action against the borrower in order to recover the difference between the amount received when the house was foreclosed upon and sold and the loan amount.

b. is limited to the amount received when the house was foreclosed upon and sold.

c. can put a lien on the borrower's new house.

d. will have the borrower sent to debtor's prison.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sustainable Finance And Impact Investing

Authors: Alan S. Gutterman

1st Edition

1637423764, 978-1637423769

More Books

Students also viewed these Finance questions