If a house goes into foreclosure, can the mortgage company put any type of lien against another property owned by the borrower?

The mortgage for our house is in my husband and my grandmother’s name. All 3 of us are on the title. My grandmother’s home is free and clear. If our home goes into foreclosure, can the mortgage company try to go after her home in any way or attach a lien to it? We live in PA, but my husband and I both work in MD. My grandmother does not work and is on a fixed income. What could they do as far as trying to collect once the foreclosure has taken place?

Asked on August 26, 2011 Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether or not you lose your home in a foreclose that is in the name of your husband and grandmother where a deficiency is owed (home is sold at auction for less than the amount owed on the loan) depends upon whether:

1. the loan that could be foreclosed upon is the loan acquired when the property was initially purchased (purchase money),

2. if so, does Pennsylvania have anti-deficiency statutes concerning purchase money loans where the former owner cannot be obligated under a deficiency balance if the foreclosedci loan was purchase money, and

3. whether or not Pennsylvania has laws precluding a defiency claim against a property owner on a foreclosed home if the forelcosure happens by way of a judicial versus a non-judicial foreclosure.

Assuming a deficiency judgment could be allowed in your circumstances on a foreclosed home, the assets of the people on the loan could be levied upon to satisfy any deficency judgment.

I suggest that you consult with an experienced real estate attorney concerning your situation.

Good luck.

 


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