Regarding mortgage foreclosures, once a lender elects to foreclose, the lender generally may not sue on the note after foreclosure except under certain circumstances. Is this statement true?

• A. True
• B. False
• C. Only with the borrower's consent
• D. Only if there is a deficiency judgment

Answer: (A)

When a mortgage is foreclosed, the lender uses the sale of the property to satisfy the debt, and the borrower's personal obligation on the promissory note is generally discharged to the extent the sale proceeds cover what is owed. Because the debt is typically satisfied by the foreclosure sale, the lender does not usually bring a separate action on the note after foreclosure. The principal exception is a deficiency judgment: if the sale does not fully satisfy the debt and the law allows it, the lender may seek to recover the remaining balance, either within the foreclosure action or in a separate suit. Other avenues to recover money after foreclosure usually involve a guarantor or amounts expressly permitted by the loan documents, but the core rule remains that post-foreclosure, a separate suit on the note is not the default path. So the statement is true.