Foreclosure in 60154>Question Details

Mike, Both Buyer and Seller in 60154

IF I GET FORCLOSED ON ONE PROPERTY CAN THE BANK PUT A LEAN ON THE OTHER PROPERTY

Asked by Mike, 60154 Sun Jan 10, 2010

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Answers

15
Don't get any idea going in your head now. Call a real estate lawyer, don't ask realtor. Trust me ask people who is licensed to do this job.
1 vote Thank Flag Link Thu Jan 21, 2010
Not knowing which state you live in or the property is located in, I can only suggest you seek legal advice.
The answer will probably be yes, once they follow the laws of your state; they have to go through the legal steps in order to do so. If the foreclosed property has been sold, and there is a deficient balance on the loan you may be held as the responsible party.
1 vote Thank Flag Link Wed Jan 20, 2010
Hi Mike-

I was reading some of the answers below. Many agents answering are from out of state and may not know that Illinois is a "judicial" state. You need to contact an attorney to get your questions answered as they are "legal" questions.

I hope this helps!
0 votes Thank Flag Link Sat Jan 23, 2010
It looks like your property is located in illinois and if that is correct, the foreclosure process is a judicial and thus the bank can file a judgement and sue under its deficiency rights. This does not always happen but if they think you have assets, they can try to recoup losses.


Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://milwaukeebailout.com
0 votes Thank Flag Link Thu Jan 21, 2010
As everyone below mentioned, this is definately a question for an attorney....

However, I will say in my experience, I've never seen a bank attach another property, based on a lien they have on one property.....can't see how they can do that.

I believe many are thinking of when a person files bankruptcy, all of their properties are fair game.

Marla Lopez
0 votes Thank Flag Link Wed Jan 20, 2010
Hi Mike,

You have an awesome question. Really, this foreclosure market is bearing out all of the details that owners endure as they lose their properties to foreclosure. Yes, the answer to your specific question is yes! The bank CAN put a lien on another property. However, this practice is not universal but it is definitely becoming more commonplace. You see, the forelclosure is a judgement award and they can pursue your assets for that money. However, laws do govern the amount of money they can pursue. If they foreclose on your house because you owe $150,000 they may not in fact be able to put a judgement against you on another property for $150,000 if they sell your house for $100,000 to someone else after foreclosure. Does that make sense? The balance owed now is only $50,000... not $150,000. Do banks sometimes attach liens for the wrong amount of money? You betcha... every day. It's a mess right now. Please be aware that sellers have rights. You have a right to a fair trial, you have a right to an attorney, and in America (thank God) you have remedies such as that unpopular "bankruptcy" remedy. Get an attorney and learn your options. (smile)
0 votes Thank Flag Link Wed Jan 20, 2010
One never knows without entire review of your file, Best contact a real estate attorney undetermined paperwork bank may have give them legal rights any other property. Odds may not be in lender favor

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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Lynn911

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0 votes Thank Flag Link Mon Jan 11, 2010
It's best to seek advice from a real estate attorney, but a lender just can't place a lien on your other property. They first need to go through the courts and sue you. If the lender wins, they can enforce the judgment by placing a lien against any real property that you own.
0 votes Thank Flag Link Mon Jan 11, 2010
ABSOLUTELY, now whether they will be able to force you into foreclosure to collect is another thing. If the other property is your primary home most likely the judge in a foreclosure case against the lien is not going to allow a foreclosure of your primary home, therefore the lien will just stay there until you sell the home. Good Luck Bob
0 votes Thank Flag Link Mon Jan 11, 2010
Hi Mike,

The lender does not automatically have the legal right to your other assets. It's never one way. In your case, the lender may or may not be able to legally go after your other assets. First you need to see how the lender in your state will foreclose. If they foreclosure by Judicial Foreclosure they can go after your assets. If they foreclosure by Non-Judicial Foreclose and your loan is a non-recourse loan then they cannot go after your assets.
If you have a second lien on your property that is recouse and lender in first position forecloses by Non-Judicial foreclosure then lein-holder in first position is satisfied but lien holder in second position will remove their interest in the collateral (your property) and then place that interest on you directly. Either other assets you have, cars, homes, or garnish wages.

Start here:

How does the lender in your state foreclosure? Judicial or Non-Judicial Foreclosure

Is your loan(s) recourse or non-recourse?

Once you get that information you will know for sure. Everything is on your paperwork, if you need some help you can see a local HUD Counselor for FREE!! in your area. Bring your paper work. For a good free website with lot's of good information you can visit.

Good Luck!
Hannah Fliegel
415-999-9348
0 votes Thank Flag Link Mon Jan 11, 2010
It is possible. I would suggest speaking with a real estate attorney to see what your best option is. Rules and laws vary by state. Ignorance of the law will not protect you. This is one instance where "wait and se"e could be the worst option. Get some legal advice a soon as possible.

Sincerely,

Pam Cohn
Broker Associate, GRI, CDM
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
pcohn@prutropical.com
727-204-7155
0 votes Thank Flag Link Sun Jan 10, 2010
To best protect yourself consult with an attorney specializing in real estate.

Anna
0 votes Thank Flag Link Sun Jan 10, 2010
It is always best to work with the bank, rather than trying to sneak by or pull a fast one. The bank always can sue under a deficiency and attached other properties. The foreclosure process in Illinois is a judicial foreclosure so it already is a formal law suit adding a defiency is not that difficult.

I would have a discussion with your bank of the work this out!

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee


http://milwaukeebailout.com
0 votes Thank Flag Link Sun Jan 10, 2010
Hey Mike,

You should speak with an attorney on this one. You'll need to make sure your personal assets are protected from any deficiency in the mortgage that gets foreclosed.

Best of Luck

Wayne Beals
Keller Williams CCG
312-77BEALS
312-772-3257
wbeals@kw.com
0 votes Thank Flag Link Sun Jan 10, 2010
Simply put, yes they can. If you own multiple properties in your name or the name of a llc or realty trust then they can lein the other properties or seek an attachment through court for the shortfall on the one being foreclosed. You should try a work out with the bank whether it be a loan modification, short sale or deed in lieu of foreclosure to avoid teh foreclosure at all cost. good luck working things out.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Jan 10, 2010
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