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The bank sells John's house at an auction. Unfortunately the selling price is less than what he still owes on the house, so John is forced to pay the difference through a _____.repossessionforeclosure collateraldeficiency judgment

Question

The bank sells John's house at an auction. Unfortunately the selling price is less than what he still owes on the house, so John is forced to pay the difference through a _____.repossessionforeclosure collateraldeficiency judgment

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Solution

In this scenario, John's house is sold at an auction by the bank. However, the selling price of the house is lower than the amount he still owes on it. As a result, John is required to make up the difference through a process known as a "deficiency judgment."

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