New England Savings Bank v. Lopez

Katz, J.,

with whom

Today the majority holds that different treatment should be afforded to debtors who lose their property through foreclosure by sale and debtors who lose their property through strict foreclosure. Only if a debtor’s property is taken as a result of a strict foreclosure, the majority maintains, is a debtor’s remaining debt offset by the fair market value of the property. The poor soul whose property is taken through foreclosure by sale will have his debt reduced by the price procured at the foreclosure sale. The majority recognizes that this price is not fair market value and…