What happens if the collateral does not sell for enough to satisfy the secured obligation?

If the collateral does not sell for enough to cover the remaining secured obligation owed to the secured creditor, the secured creditor has the right to obtain the remaining amount from the debtor directly or through other assets. The secured party may initiate a legal action against the debtor and get a judgment for the amount owed. The secured creditor may also decide not to take any legal action against the debtor and just take the loss on this loan.