Can The Bank Go After Another Property of Mine If I Foreclose

[Mkveli2pac]

What is the name of your state (only U.S. law)? PA

I am on the verge of foreclosure (I will call it Property A) and I was wondering if the bank can go after another property that has my name on the deed (I will call it Property B). Property B was solely in my mother's name and then she had me added to the deed so now both of our names are listed for Property B. Property A has nothing to do with my mother but I wasn't sure if the bank can go after Property B because my name is on it.

Thanks for any assistance that can be provided.

 

[Ohiogal]

What is the name of your state (only U.S. law)? PA

I am on the verge of foreclosure (I will call it Property A) and I was wondering if the bank can go after another property that has my name on the deed (I will call it Property B). Property B was solely in my mother's name and then she had me added to the deed so now both of our names are listed for Property B. Property A has nothing to do with my mother but I wasn't sure if the bank can go after Property B because my name is on it.

Thanks for any assistance that can be provided.

It is possible they can put a lien against it for the amount you would owe after Sheriff's sale.

 

[tranquility]

To collect on another property, two things must happen. First, your loan on building A must be a recourse loan. That is, it is not only able to be collected against the property. Second, there needs to be a judgement against you. Many foreclosures are "non-judicial" in that there is not a judgment against the property owner in the seizing of the property. Until they go to court for a judicial foreclosure or go to court to get a judgment for the shortfall, they won't be able to lien your other property.

 

[FlyingRon]

Tranquility has nailed it.

Note that you do not "foreclose" on your property. You go into default. It's the bank who decides if they are going to foreclose or not.

Presumably the property is in Pennsylvania. There are NO non-judiciary foreclosures in Pennsylvania. Unless the properties were cross colateralized) which is unlikely, the lender has six months after the foreclosure to file in court for a deficiency judgement. The borrower however received fair market value credit for the property, so unless you were upside down on the loan, there's no deficiency to be had.

Being "on the deed" is not some sort of club. When your mother added you to the deed she GAVE YOU half the house as a gift. If she is still living in the house, that was a very risky and foolish thing for her to do. In addition to opening up the liability it could be attached for your insolvencies, it also can screw up her medicaid eligibility and make it impossible for her to avail herself of other programs such as reverse mortgages.

 

[Mkveli2pac]

There is also a co-borrower on the house, which is my ex-girlfriend. Shortly after we bought the house, we broke up and told to leave the house, since I left, I was making my share of the payments while she lived there. I have been trying to sell the house and since my ex would not cooperate with me and lower the price to make the house look more attractive to a buyer, I had no recourse but to stop paying. She had no intentions of leaving the house while I was paying my half of the mortgage, so as I said I had to go down this route.

Since we are co-borrowers, can the lender come just after me because I am more financially stable than she is?

 

[Zigner]

I have been trying to sell the house and since my ex would not cooperate with me and lower the price to make the house look more attractive to a buyer, I had no recourse but to stop paying.

This confuses me.

Why do you feel you had no other choice? You had other choices that did not screw the bank out of what you agreed to pay.

 

[FlyingRon]

Since we are co-borrowers, can the lender come just after me because I am more financially stable than she is?

They can come after either or both of you. You each are 100% responsible for making sure the payments are being made. I can guarantee you both will be named in the foreclosure suit and by the potential deficiency action that follows. They'll the use whatever legal means there are to recover that judgement.

The question again, is the fair market value greater than the outstanding loan?

 

[STEPHAN]

Since we are co-borrowers, can the lender come just after me because I am more financially stable than she is?

Sure. 100%

Keep in mind your trouble with your Ex is not the banks problem. They gave you money and what it back. You agreed to pay them back whatever happens.

You could use the court system to force a sale of the property.

 

[Mkveli2pac]

This confuses me.

Why do you feel you had no other choice? You had other choices that did not screw the bank out of what you agreed to pay.

What confuses you. I can't afford to pay on a house that I am not living in. I needed alternate housing. Can you afford to pay for two homes? So please tell me in since you know the situation I am in so well, what were my other choices? I never intended to screw the bank, I had perfect credit up until this. I'm not some deadbeat who just throws myself into debt and have no intent to pay it back. Additionally, while I was paying the ex was doing nothing to help sell the house, she wouldn't lower the price at all.

 

[Mkveli2pac]

They can come after either or both of you. You each are 100% responsible for making sure the payments are being made. I can guarantee you both will be named in the foreclosure suit and by the potential deficiency action that follows. They'll the use whatever legal means there are to recover that judgement.

The question again, is the fair market value greater than the outstanding loan?

Yes, the market value is greater than the outstanding loan, not by much but it is.

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

I am on the verge of foreclosure (I will call it Property A) and I was wondering if the bank can go after another property that has my name on the deed (I will call it Property B). Property B was solely in my mother's name and then she had me added to the deed so now both of our names are listed for Property B. Property A has nothing to do with my mother but I wasn't sure if the bank can go after Property B because my name is on it.

Thanks for any assistance that can be provided.

You never should have allowed your mother to add you to a deed for her home when you had a credit obligation for a loan that could impact your assets. You put your mother's home at risk when you allowed that to happen.

At this point you seriously need to be consulting an attorney...for your mother's sake.

 

[FlyingRon]

Yes, the market value is greater than the outstanding loan, not by much but it is.

Then there is no deficiency to pursue. Pennsylvania law requires them to credit you with the full market value after foreclosure before attempting to recover the deficiency.

 

[Mkveli2pac]

You never should have allowed your mother to add you to a deed for her home when you had a credit obligation for a loan that could impact your assets. You put your mother's home at risk when you allowed that to happen.

At this point you seriously need to be consulting an attorney...for your mother's sake.

I was added to the deed of my mother's home long before I met my ex or even considered buying the house that I am facing foreclosure on.