Federal Deposit Insurance Corporation v. Willie R. Coleman and W. Dwayne Powell

This is an action by the holder of a promissory note secured by a deed of trust lien on real property, against the guarantors of the note for the deficiency owed after foreclosure and sale of the security. The trial court granted summary judgment against the guarantors; the court of appeals reversed and remanded. 762 S.W.2d 243. The principal issue we address is whether, under the circumstances of this case, a secured creditors failure to foreclose its lien promptly after the debtors default on the note is a breach of any duty of good faith or fair dealing. We hold that it is not. Accordingly, we reverse the judgment of the court of appeals and affirm the judgment of the trial court.