Finance
A Mississippi property with an outstanding first mortgage of $150,000 is sold at foreclosure for $130,000. The lender who forecloses on the deed of trust may seek:
ANo further recovery since the deed of trust is the sole remedy
BA deficiency judgment against the borrower for the $20,000 shortfall, subject to Mississippi law on deficiency judgments✓ Correct
CCriminal penalties against the borrower
DThe property back if the borrower cannot pay the deficiency
Explanation
When foreclosure proceeds are insufficient to cover the outstanding loan balance, the lender may pursue a deficiency judgment against the borrower for the shortfall. Mississippi law governs the availability and process for deficiency judgments after non-judicial foreclosure.
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