In: Accounting
Ruth Thomas owns a home that has been pledged to First Bank and Trust to secure a mortgage debt of $60,000. Ruth Thomas sells her home to John Kendall, who purchases the home and assumes the mortgage held by First Bank and Trust. John Kendall subsequently sells the home to Mark Murphy, who purchases the home subject to the First Bank and Trust loan. The First Bank and Trust loan goes into default. Can First Bank and Trust Company foreclose on the home? Can First Bank and Trust Company sue Mark Murphy for the debt? Can First Bank and Trust Company sue John Kendall for the debt? Can First Bank and Trust Company sue Ruth Thomas for the debt? In the event Ruth Thomas pays the bank in full, what remedies does she have against John Kendall or Mark Murphy or against the real property?
1. First bank and trust can foreclose on the home and it can recover the amount due from debtor as it goes into default so in such event bank and trust can foreclose the loan
2. Yes bank and trust can sue markmurphy for debt as he purchased home subject to loan, so he is liable for repayment of such loan to bank and trust
3. in case bank and trust not able to recover debt from markmurphhy then bank and trust can recover amount from john kendall as john kendall has also purchase home with loan
4. Bank and trust can sue ruth thomas for the loan amount in case of bank and trust can not recover amount from markmurphy and john kendall
5. in case of thomas pay to bank in full , he can recover the same amount from jonh kendall or markmuthhy,
in case of amount can not be recovered form kendall or markmuthhy he can take possesion of property and take ownership of property as well as he can also sale such property to recover such amount.