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Petitioners apparently defaulted on their obligation to
repay the loan according to the terms of the note. As a result,
on December 13, 2000, foreclosure proceedings were initiated by
Countrywide, and on August 29, 2002, the property was seized from
petitioners pursuant to a writ of execution. On November 26,
2002, the property was sold for $80,500 to third-parties.
At the time the foreclosure proceeding was initiated, the
principal balance on the loan was $112,035. In accordance with
Pennsylvania procedures in such matters, for purposes of the
foreclosure proceeding, the property was valued pursuant to a
Broker’s Price Opinion in a range from $90,000 to $100,000
depending upon the “marketing time”.2
Countrywide’s recovery on the note as a result of the
foreclosure proceeding is not known. To the extent that it
received less than petitioners owed, the company, although
entitled to do so under Pennsylvania law, did not seek a
deficiency judgment against petitioners. As Countrywide viewed
the matter, following the foreclosure proceeding, petitioners
owed the company $22,035, computed by subtracting the lower range
of the Broker’s Price Opinion, that is $90,000 from the amount of
principal on the loan then outstanding, that is $112,035.
Because Countrywide did not seek a deficiency judgment against
2 The phrase “marketing time” as used in the valuation
report is not familiar to the Court, and neither party offered an
explanation as to what it means.
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Last modified: March 27, 2008