Posted on: 27th Oct, 2009 05:50 pm
I received papers notifying of pending foreclosure by the city for unpaid taxes (due to the banks mistake in paying the taxes out of my escrow). The papers state that after foreclosure "A Person holding legal interest in this property will lose that interest as a result of the foreclosure proceedings".
The bank will lose the ability to foreclose on this house, correct? And the ability to pursue a deficiency judgement? I do not want the house but also don't want them garnishing my wages after a foreclosure. Could this be a loophole? What other recourse would the bank have against me if the City forecloses?
The bank will lose the ability to foreclose on this house, correct? And the ability to pursue a deficiency judgement? I do not want the house but also don't want them garnishing my wages after a foreclosure. Could this be a loophole? What other recourse would the bank have against me if the City forecloses?
Hi BJohnston!
Welcome to forums!
As far as I can understand your situation, I think the lender can still sue you for the debts. Though the city would be foreclosing the property, the lender may charge off the loan to a collection agency. The collection agency would collect the dues from you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I can understand your situation, I think the lender can still sue you for the debts. Though the city would be foreclosing the property, the lender may charge off the loan to a collection agency. The collection agency would collect the dues from you.
Feel free to ask if you've further queries.
Sussane
i have to agree that the lender doesn't lose any of its ability to enforce the promissory note you signed. if you default on that loan, regardless of the action on the property (and the bank isn't going to allow that to happen anyway), they still want their money. my parenthetical aside? the lender is going to resign itself to taking care of the taxes - passing it along to you as the homeowner, of course, in order to prevent the home from going to foreclosure and being taken by the taxing authority. at least, that's my reasoned opinion.
