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36. Which party is likely to prevail?

After the man failed to pay the accelerated amount, the bank filed a foreclosure action. In that action, the man defended by offering into evidence an appraisal showing that the then-current value of the property was more than the balance due on the mortgage and more than the value of the property before the man renovated the one warehouse and tore down the other.

When the bank learned of the man's actions, it accelerated the note and sent the man a letter containing a notice of default and intention to commence foreclosure proceedings. At the time the letter was sent, the man was current on his monthly mortgage payments and property insurance premiums.

A few years later, the man changed the nature of his business. His business plan indicated that he would need only one of the two warehouses and that the warehouse to be used would need renovation. The man renovated one of the warehouses and tore the other one down and did not replace it.

A man purchased two warehouses on the same parcel of land and financed the purchase with a mortgage loan from a bank. Among other terms, the mortgage required the man to make all monthly payments of principal and interest on time, to pay all property taxes and assessments when due, to keep the property insured, and to not damage or impair the property or commit waste on the property. The man used the warehouses to store inventory for his business.