Federal Deposit Insurance Corp. v. Coleman

OPINION

HECHT, Justice.

This is an action by the holder of a promissory note secured by a deed of trust lien on real property, against the guarantors of the note for the deficiency owed after foreclosure and sale of the security. The trial court granted summary judgment against the guarantors; the court of appeals reversed and remanded. 762 S.W.2d 243. The principal issue we address is whether, under the circumstances of this case, a secured creditor’s failure to foreclose its lien promptly after the debtor’s default on the note is a breach of any duty of good faith or fair dealing. We hold…