Classes 21-23: Foreclosure-Borrower Protections - Apr. 1-8

Question 1

What happened in Trustees of the Washington-Idaho-Montana Carpenters-Employers Retirement Trust Fund v. Galleria Partnership (1989)? (Q)

Answer 1

If property sells at a foreclosure sale for much less than the property’s fair market value, the deficiency judgment is calculated by applying the property’s fair market value to the borrower’s remaining debt.

Question 2

What is the one-action rule? (Emanuel)

Answer 2

This limits the mortgagee to a single action, which must include foreclosure. (216)

Question 3

What happened in In re Kohn (2002)? (Q/TB)

Answer 3

A trustee’s sale of property under a deed of trust may be set aside if the bid price is grossly inadequate.