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226  COMMERCIAL   LAW.
SALE  OF  MORTGAGED  PROPERTY.— Property  which  is
mortgaged  is  nevertheless  the  subject  of  conveyance  by  deed.
The  conveyance,  however,  does  not  destroy  the  lien  of  the
mortgage.  The  mortgage  lien  follows  the  property  into  whoseso-
ever hands  the  property  may  pass  as  owner,  and  before  he  can  have
an  absolute  title,  he  must  pay  off  the  mortgage.
It  is  customary,  however,  in  cases  of  sale  of  mortgaged  prop-
erty, for  the  purchaser  either  to  pay  off  the  mortgage,  or  execute
a  new  one  binding  himself  to  pay  the  debt.
Where  no  such  arrangement  is  made,  the  parties  usually  recite
in  the  mortgage  that  "this  conveyance  is  made  subject  to  that
certain  mortgage  bearing  date,"  etc.  (Describing  the  mortgage.)

In  this  manner  the  records  are  made  to  show  the  exact  con-
dition of  the  land  as  regards  title.
FORECLOSURE. — In  case  the  mortgage  debt  is  not  paid
when  it  is  due,  the  holder  of  the  mortgage  may  commence  an
action  in  court  for  the  enforcement  of  his  lien  against  the  property,
and  may  obtain  a  judgment  decreeing  the  foreclosure  of  the  mort-
gage, and  sale  of  the  mortgaged  property.
A  commissioner  is  appointed  by  the  court  to  sell  the  property,
which  he  must  do  at  public  auction,  to  the  highest  bidder.  The
proceeds  of  the  sale  are  first  applied  to  the  expenses  thereof  and
costs  of  foreclosure,  and  then  to  the  satisfaction  of  the  mortgage
debt.
If  there  be  any  surplus  remaining,  it  must  be  paid  to  the  mort-
gagor. If  there  be  a  deficiency,  an  additional  judgment,  called  a
deficiency  judgment,  is  entered  against  the  mortgagor  personally
for  the  amount  of  the  deficiency,  and  any  other  property  which
he  has  (not  exempt)  may  be  sold  to  satisfy  the  deficiency.
