If a property is foreclosed on, can other assets of the owner also be seized?
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If a property is foreclosed on, can other assets of the owner also be seized?
I own a rental house that is going to be foreclosed on by 1 of the 2 banks that I have mortgages with. Can they put liens on or seize other property I own that has nothing to do with that house or that bank? Will they just pursue me personally by garnishment if I don’t pay them?
Asked on October 4, 2011 under Real Estate Law, Kansas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Whether or not your personal assets besides your home is at risk for a deficiency judgment concerning the foreclosure of your home depends upon whether the loans that are being foreclosed upon are purchase money (used in the home's purchase) or not and if they are, does your state have anti-deficiency legislation preventing a deficiency judgment on purchase money?
If the loans are purchase money and your state has anti-deficiency legislation, then your personal assets beyond your home will not be at risk.
Another issue is whether or not your state makes a distinction with foreclosures that are judicial or non-judicial. In California, even if you have a non-purchase money loan, if you have a non-judicial foreclosure the lender cannot obtain a deficiency judgment. I suggest that you consult with a real estate attorney on the topic you inquire about in that I need to know for sure what type of loan you are inquiring about.
Good luck.
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