Practice question
What is the deficiency in a real estate mortgage foreclosure context?
- Every amount originally borrowed even after full satisfaction.
- The creditor’s unrelated future business losses.
- The balance legally remaining after applying the foreclosure proceeds to the secured obligation and proper charges.
- The entire value of the debtor’s unrelated property.
- An automatic criminal fine.
Legal references
- https://www.lawphil.net/courts/rules/rc_1-71_civil.html — Rules of Court, Rule 68 section 6: deficiency and personal liability.
- https://lawphil.net/judjuris/juri2023/aug2023/gr_259282_2023.html — Spouses Prieto v BPI, GR 259282, August 30 2023, main opinion: proof of obligation and foreclosure proceeds.
- https://www.lawphil.net/judjuris/juri2021/apr2021/gr_203194_2021.html — Asset Pool A v Spouses Berris, GR 203194, April 26 2021, main opinion: deficiency after termination of foreclosure; no splitting of cause of action.
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, article2085: third-party real security.
Answer this question in flashcards to review your response and continue practicing.