California Quakes, Inc. borrowed $150,000.00 from West Virginia Community Bank and executed a note and mortgage on property located in Truth or Consequences, New Mexico, securing that amount. New Mexico permits strict foreclosure. California Quakes, Inc. defaulted on the loan, and West Virginia Community Bank commenced strict foreclosure proceedings pursuant to state law. After the one-year period of redemption, West Virginia Community Bank sold the property to a third party in an amount in excess of the mortgage and costs of the foreclosure proceeding. California Quakes, Inc. sued to recover the surplus from West Virginia Community Bank.
Can California Quakes, Inc. recover the surplus from the foreclosure proceedings?
For this case you have to look at what the foreclosure is where this is the legal process in which the lender... View the full answer