Final answer:
Whether a buyer is responsible for the remaining debt after a forced sale depends on the state laws, as different states have varying regulations regarding deficiency judgments.
Step-by-step explanation:
If a forced sale, such as a foreclosure, does not yield enough money to cover the outstanding mortgage, costs, and other fees, the buyer or borrower may still be responsible for the remaining debt. This is known as a deficiency balance. The correct answer to whether the borrower is free from any additional action is c) Depends on state laws. Different states have different regulations regarding deficiency judgments following foreclosure. Some states may allow lenders to pursue borrowers for the deficiency, while others have anti-deficiency laws that prevent or limit such actions after a property is sold at a foreclosure sale.
Answer: c) Depends on state laws