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 12 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.


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.

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