Can a bank put a lien on a home I inherited with my two brothers if I either short sale my home or have a foreclosure.
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Can a bank put a lien on a home I inherited with my two brothers if I either short sale my home or have a foreclosure.
Asked on June 1, 2009 under Real Estate Law
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
If I'm reading your question properly, you have your own residence that's in danger of foreclosure. You want to know, if it is foreclosed upon and the bank gets a deficiency judgment against you, can the bank then move against this second property that you own with your brothers to collect on the judgement?
Hopefully I'm restating your question properly here. Depending on the state that you are in, any other real estate that you own can be liened with a judgment lien. Your co-owner's share could be levied upon by the judgment lien holder. When that property is sold, your share, and your share alone, will be used to satisfy the judgement. Your brothers' shares are safe from levy. However, if the lien holder gains title to your co-owner's share, they might bring a partition lawsuit to force the sale of the property.
As a practical matter, many times lenders don't even pursue deficiency judgements. They feel that you are already in financial straits and collecting on such a judgement might be more time and trouble than it is worth. Of course alot depends on what you owe and what your share in this second property is worth. Bottom line, for full details you should consult an experienced real estate attorney in your area.
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