if a foreclosed property is in REO status can the bank still get a summary judgement?
July 27, 2010 by gtsay
Filed under Foreclosure Properties
Question by old fart: if a foreclosed property is in REO status can the bank still get a summary judgement?
can the bank go after me with a summary judgement for payment of the mortgage balance if the house is not sold , and what if the house does not sell for years ? is there a statute of limitations on this?
Best answer:
Answer by Janet P
Yes they can, if you check the records you will see that they sold it to themselves when it was auctioned.
Know better? Leave your own answer in the comments!
Yes, the bank can obtain a judgment. The house need not sell for the lender to procure a judgment. It can obtain a judgment for its current losses, which is the deficiency on your mortgage amount and costs to process the foreclosure.
Maybe, maybe not. It depends on a multitude of facts that you have not even begun to provide. Most important fact is what state you are in, because laws concerning deficiency judgments (summary judgment is something completely different) vary significantly from state to state. In some states, a lender cannot obtain a deficiency judgment if the lender made a full credit bid at the foreclosure sale. Some states prohibit deficiency judgments on any purchase money mortgage. Some states require lenders to go through a judicial foreclosure in order to preserve a right to a deficiency judgment, and once a lender opts for a non-judicial foreclosure, the right to a deficiency action is waived. And yes, even if the lender is entitled to sue for a deficiency balance, there is a statute of limitation, which (surprise surprise) varies from state to state.