Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank.Rob purchases the property subject to the mortgage.There is a default on the mortgage.When First Bank forecloses, the value of the property has declined and it sells for only $30,000.
a.Can First Bank recover the $20,000 balance from Rob? Explain.
b.Can First Bank recover the $20,000 from Pam? Explain.

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The Answer of Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank.Rob purchases the property subject to the mortgage.There is a default on the mortgage.When First Bank forecloses, the value of the property has declined and it sells for only $30,000.
a.Can First Bank recover the $20,000 balance from Rob? Explain.
b.Can First Bank recover the $20,000 from Pam? Explain.

Pam Sells to Rob Property Which Has a $50,000 Mortgage