When Bob decided to invest in the futures market, he borrowed $50,000 from Top Financial Corporation, secured by a mortgage on his home. Shortly thereafter, when the bottom dropped out of the pork belly futures market, Bob needed some ready cash, so he agreed to sell his home to Giles for $70,000. With the deed conveying the property to Giles was a recital signed by both parties stating that title passed “subject to” the indebtedness of $50,000 in favor of Top Financial Corp., “which obligation grantee expressly assumes.” Giles then paid Bob $20,000, took possession of the house, and began making monthly payments of principal and interest to Top Financial Corp. A few years later, Huge & Mighty, Inc., a chemical manufacturing firm, built a huge sulfur processing plant just down the road from the home, which caused the house to immediately decline in value to $35,000. Giles’s career as a dramatic actor similarly went into decline, and he was unable to continue making the monthly payments to Top Financial Corp. Top Financial Corp. exercised its contractual right of no judicial foreclosure, and sold the house at a public auction for $34,000. Top Financial then brought suit against Bob and Giles for $14,000, the difference between the proceeds of the foreclosure sale and the $48,000 principal remaining due on the original loan to Bob. The jurisdiction does not bar deficiency judgments.

Top Financial Corp should be granted a judgment for $14,000 against: