Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 11

Denaro owned property appraised at $750,000, which secured a loan of approximately $500,000. After Denaro filed for bankruptcy, the bank foreclosed. At a sheriff's sale with multiple parties bidding, the bank purchased the property for a bid of $401,000. Denaro filed a motion in court arguing that based on the appraisal report showing a fair market value of $750,000, the bank was satisfied in full. Discuss the rights of the parties depending on whether the state has a law regarding the sufficiency of the sale price at a foreclosure.