Will the price paid at a foreclosure auction settle all claims against said property
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Will the price paid at a foreclosure auction settle all claims against said property
I am interested a foreclosure property. In the complaint there are 4 additional persons with claims/interest against the property, the HOA most likely for non-payment of HOA dues, some waste management company and 2 other banks and are listed as junior. It states they may or may not have claims. Don’t they either do or do not? How can I figure was is totally owed and what my cost will be? Will the price paid at auction settle all claims?
Asked on November 30, 2016 under Real Estate Law, South Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
No, the price paid at auction will NOT settle other persons' or parties' claims: the foreclosing lender cannot compromise, dismiss, eliminate, settle, etc. other parties' claims without their consent, and they will not consent unless they are paid. So unless the bank is taking their money and giving some or all away to the other potential claimants and getting signed settlements from them--which you can assume is not happening--other claims may and likely do exist.
They have to file their claims before their respective statutues of limitation run out, but not any time before then--other parties can wait to file. Therefore, there is no way, until years have gone by, to know for sure whether they will or will not file.
Based on what you write, you could be exposing yourself to considerable other claims if you buy this property.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.