Mortgage foreclosure
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Mortgage foreclosure
If my house is foreclosed on can that bank putt a lien on a mobile home I own or on a rental that I have a mortgage with through another bank?
Asked on June 19, 2009 under Real Estate Law, Indiana
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Yes, a deficiency judgement may be obtained in Indiana. This occurs when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures. This means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan. The lender can come after the difference (ie "deficiency") by filing a lien against (ie "attaching") other of the debtors assets. In your case this would certianly include your mobile home and investment property.
S.J.H., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Once the house is foreclosed upon the house will be auctioned and the bank will use the money received to satisfy its loan that you had. If it fully recoups it you will technically be entitled to seek a refund of any surplus. If it sells it at a loss, it can seek the balance of the mortgage from you. If it acquires a Judgment against you for this difference, it can seek to put a lien on your property such as the mobile home or other property you own. If the bank merely takes it back, it has an obligation to mitigate damages and try and sell it to the highest bidder but again any difference can be sought against you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.