Can a property be sold without notifying the lender of such a sale?
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Can a property be sold without notifying the lender of such a sale?
As a private lender we have placed a lean on the property. However, the property owner has sold the property to another party without our consent or knowledge. Is this legal? Can we go after the attorneys that have closed the sale of the property? The mortgage on the property was not assignable. Furthermore, the sale was structured with a close that upon the sale of the property to a new owner, the Lender, which is us, responsible for payment of then outstanding real estate taxes. We ended up paying them to prevent the county of taking over the property and whipping us out. Is this fraud?
Asked on November 28, 2011 under Real Estate Law, New Jersey
Answers:
Michael D. Siegel / Siegel & Siegel, P.C.
Answered 12 years ago | Contributor
Whether it can be sold without your consent turns on the mortgage document you have filed. Most prevent it, but I did not see yours. Your rights are limited to foreclosure. If this is a commercial property, you can also sue on the Note at the same time. It is not a fraud. That is not your claim. I have handled these types of matters.
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