Wilk bought an apartment building from Dix Corp. There was a mortgage on the building securing Dix's promissory note to Xeon Finance Co. Wilk took title subject to Xeon's mortgage. Wilk did not make the payments on the note due Xeon and the building was sold at a foreclosure sale. If the proceeds of the foreclosure sale are less than the balance due on the note, which of the following statements is correct regarding the deficiency?
a. Xeon must attempt to collect the deficiency from Wilk.
b. Dix will not be liable for any of the deficiency because Wilk assumed the note and mortgage.
c. Xeon may collect the deficiency from either Dix or Wilk.
d. Dix alone would be liable for the entire deficiency.
Answer: D
Tax
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