Lee v. Key West Towers, Inc.

OPINION

PHILLIPS, Chief Justice.

This case involves two issues: the calculation of a deficiency or surplus after foreclosure of a mortgage securing a “wraparound note,” and the effect of a verified denial filed within seven days of trial. For the reasons set forth in our decision today in Summers v. Consolidated Capital Special Trust, 783 S.W.2d 580 (Tex.1989), we hold that the amount bid at the foreclosure sale should be credited against the outstanding balance of the note. We also hold that under our previous decision in Goswami v. Metropolitan Savings & Loan Ass'n, 751 S.W.2d 487 (Tex.1988),…