Problem.Deficiency.3 (real property)

     Recall the veterinary grad from Problem.Security first (Question E).   Suppose that he had approached the Bank of Petaluma not only to refinance his student loans, but also to obtain capital to start a veterinary practice in a leased office (money for equipment, supplies, office furnishings, advertising, and other incidentals).  The bank loaned him $150,000, $100,000 of which paid off his student loan debt.  To secure the new note, the bank took deeds of trust on two parcels of unencumbered, unimproved mountain real property that the debtor had recently inherited.  Both the debtor and the bank knew that the combined appraised value of the two parcels of real property was about $100,000, but, on the stength of the debtor's credentials, credit history, and business plan, the bank was nonetheless willing to make the loan without further security.  

     The veterinary practice did not go well and the debtor defaulted on the note.  After unsuccessful attempts at a work-out, the bank non-judicially foreclosed on one parcel of real property and acquired title to the property through a credit bid of $50,000.  The bank then approached you for advice about what it should do next?  What do you advise and why?  Had the bank approached you for advice after noticing its non-judicial foreclosure sale but prior to the actual sale, what would you have advised?  Would the bank have been better off had it taken two notes, one note for $100,000 secured by the real property and one unsecured note for $50,000?