Posted on: 31st Mar, 2009 03:29 pm
does the bank assume ownership of properties that were used as collaterol to secure the original loa...We have a medical practice that was finaced through a bank, the original loan was secured with two properties as collateral we are facing forclosure of the orignal loan, however have paid the loan for approximately 3.5 years at a 9% interest rate the origainal loan was for 360,000.00. If in the event we foreclose on this loan would the bank assume ownership of the two properties that were used as collaterol along with the propertiy that the loan was used to purchase?
Yes that is a very real possibility. The properties were used as collatoral for the loan and are therefore exposed to the lenders.
Hi jsgaytan!
Welcome to forums!
As far as I know, if you default on your loan, the bank will have the right to foreclose the properties which were used as collateral for the loan. If you are facing hardship in paying off the loan and if you have already defaulted on the loan, then you should speak to the lender about loan modification. This will help you to save both the properties and will also save your credit.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
As far as I know, if you default on your loan, the bank will have the right to foreclose the properties which were used as collateral for the loan. If you are facing hardship in paying off the loan and if you have already defaulted on the loan, then you should speak to the lender about loan modification. This will help you to save both the properties and will also save your credit.
Feel free to ask if you have further queries.
Sussane
