In January 2017 Larry Lender entered a $240,000 mortgage agreement with Bob Borrower to finance Bobs $300,000 real estate purchase in New York. For the first year after the closing, Bob timely made his full monthly installment payments to Larry Lender consistent with the obligations in the mortgage agreement. In January 2018, Bob fell 2 months behind in his payments to Larry Lender. Larry Lender is your client, and he meets with you and your firm. Larry Lender advises that his company has not yet sent any communication to Bob Borrower regarding the two months of non-payment. Larry Lender wants to discuss their legal options based on New York law as we have discussed in class this semester.

Question 1. From what we discussed and based on these facts above, should your law firm file an immediate lawsuit against Bob Borrower to foreclose on Larry Lenders mortgage agreement with Bob Borrower?

Yes or No, and explain your answer.

Question 2. Based on New York law as we have discussed in class this semester, can Larry Lender sue Bob Borrower both (1) to foreclose on the real property to have it sold at a public auction and (2) at the same time also sue Bob Borrower to recover the amount due from him to Larry Lender?

Yes or no.

Question 3.

For question 3, assume that a lawsuit was filed at some point in 2019 on behalf of Larry Lender, that a $230,000 judgment of foreclosure was obtained against Bob Borrower, and that Bob Borrowers property sold at the auction sale for $220,000.

Based on New York law as we have discussed in class this semester, is Larry Lender entitled to legally pursue a judgment for the remaining $10,000 balance due on the mortgage?

Yes or no. If no, explain why Larry Lender cannot pursue that relief; if yes, identify the type of judgment that Larry Lender would request from the court.