Old Second National Bank v. Jafry

Plaintiff bank obtained judgment of foreclosure on property, and Bank purchased property at sheriff's sale. Court approved sale and entered deficiency judgment, and 4 months later Bank sold property for amount greater than purchase price at sheriff's sale. Bank then initiated enforcement proceedings against Defendants, seeking full deficiency judgment. When a mortgagee obtains a deficiency judgment against mortgagor in foreclosure action, purchases property at judicial sale, and then resells it to a third party for amount in excess of price paid at judicial sale, mortgagor is not entitled to setoff in enforcement proceedings to recover deficiency judgment, because foreclosure terminates mortgagor-mortgagee relationship. (HUDSON, concurring; SCHOSTOK, dissenting.)