Question

7 Question 30 of 50. Sarah's bank foreclosed on the office building she purchased four years ago for $450,000, when she stopped making loan payments on the loan securing the building. Sarah's Form 1099-A indicated that the debt at the time of foreclosure was $420,000 and the FMV of the building was $460,000. If the building is sold for the FMV, how much of Sarah's personal assets can the bank attempt to collect to satisfy the judgement? $40,000 $30,000 $10,000 $0

Answer 1

Debt amount at foreclosure is $420000.
while asset sold at FMV of $460000
Bank can only recover its debt amount. so bank will recover $420000 from Its sale value. remaining amount will lie with Sarah
Bank has availed full recovery of debt. so no personal assets can be taken.
Answer is 0.