a.Definition
i.When a borrower, mortgagor, fails to make the payments described in the note and referenced in the mortgage, the lender, mortgagee, can foreclose the mortgagor’s equity of redemption and have the property sold in order to apply the proceeds of the sale to the outstanding balance on the note
1.any remaining funds after satisfaction of the debt go to any successive lien holders or the mortgagor
2.Some states (Plank says the extreme minority position) hold there is a duty for the mortgagee to get the highest possible price at a foreclosure sale to protect the mortgagor’s interest
a.Reasonable efforts to sell are usually sufficient for the mortgagee
b.This duty is limited only to available purchasers, the mortgagee has no duty to seek purchasers
c.Mortgagee’s duty is only to satisfy the amount of the mortgage absent an available purchaser for a higher amount
3.Courts can set aside foreclosure sales if the price paid is too low