QUESTION
What can I do if I have a rental property and the bank refuses to foreclose on it and Instead, they plan to sue me?
Asked on Dec 17th, 2012 on Foreclosures - California
More details to this question:
I have tried to work out a deal, they won't accept they want full payment.
6 ANSWERS
I would need more information. Are you tendering the full loan amount or what is back due? Did they say they are suing you?
Answered on Jul 07th, 2013 at 10:37 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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That is the lender's right depending on the law of the state where the property is located. Talk to a competent foreclosure attorney in that state.
Answered on Dec 20th, 2012 at 7:14 AM
Insurance Law Attorney serving Gainesville, FL
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Steven Kalishman, P.A. Law Offices
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They have the right to sue you for breach of contract. They don't have to work out a deal.
Answered on Dec 19th, 2012 at 5:10 AM
Richard hirsh
The bank has a right to elect its remedy. If you signed the note personally, they can file a lawsuit on the note only and seek to recover the money judgment. You might consider listing the property for sale. Have you asked the bank to consider a short sale without releasing the claim for a deficiency against you, since it appears they would not do that? If you actually have a contract to sell the property and they decline to allow it and accept the net proceeds, you might have at least a partial defense based on the bank's failure to mitigate damages. This response does not establish an attorney client relationship with the undersigned and any person and is intended only as a general comment based upon very cursory facts.
Answered on Dec 19th, 2012 at 5:10 AM
1 Award
In Ca. bank must proceed with Judicial foreclosure, or private-nonjudicial foreclosure. They can't just sue you for personal liability on the note-if they do, they could lose the security interest in the property. If they proceed with Judicial foreclosure, they can preserve their ability to secure a deficiency judgment against you (the difference between what you owe and the greater of the FMV of the property on the date of the foreclosure sale or the amount bid at the foreclosure sale). No deficiency liability if they go by way of a private foreclosure.
Answered on Dec 19th, 2012 at 5:10 AM
What are they going to sue you for? Most lawsuits will be barred by the one form of action rule or the security first rule (Code of Civil Procedure section 726). If I were you, I wouldn't worry about a lawsuit.
Answered on Dec 19th, 2012 at 5:09 AM