Posted on: 22nd Feb, 2009 08:18 am
Friend has an apartment house in Texas going into foreclosure. Lender is attempting to take a vacation home owned by friend in Calif. in addition to foreclosure on apt. property. Does Texas have a single action law, and if so, does it apply to commercial properties?
Hi michaelrhough,
As far as I know, if a lender forecloses a property and if the borrower cannot pay the deficient amount resulting from the sale of the property, then the lender will have the right to place liens on other properties. But I don't think the lender can take away the property of your friend situated in another state. You can consult an attorney and take his opinion regarding this issue.
Thanks
As far as I know, if a lender forecloses a property and if the borrower cannot pay the deficient amount resulting from the sale of the property, then the lender will have the right to place liens on other properties. But I don't think the lender can take away the property of your friend situated in another state. You can consult an attorney and take his opinion regarding this issue.
Thanks
As far as I know, there are some states like California which follows single action law while others like Illinois do not. States which follows single action law, allow only one suit to collect the mortgage. Suppose if the lender forecloses the property, he'll not be able to sue the borrower for any other judgment or lien.
What is one action rule all about?
As far as I know, single action rule or single action laws allows one form of action for the recovery of any debt secured by a mortgage or deed of trust on real property. The single action must be a foreclosure. Apart from that if a creditor wants a deficiency judgment, then the rule contemplates a single action consisting of a two-stage judicial proceeding. In the first stage, it is ordered that property should be sold, determines the liability for a deficiency and culminates in a foreclosure decree. The second stage helps to establish the amount of the deficiency
Hi Guest!
Welcome to forums!
The one action rule or the single action law is a rule of law which forces a lender to bring only one court action or proceeding against the borrower in case of foreclosure. In the event of default, a secured creditor must, in a single action, first exhaust all its security as a condition of obtaining a monetary deficiency judgment against the debtor personally. If the secured creditor does not resort to all its security before obtaining a money judgment on the debt, the secured creditor may be deemed to have made an "election of remedies" and to have waived the balance of its security.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The one action rule or the single action law is a rule of law which forces a lender to bring only one court action or proceeding against the borrower in case of foreclosure. In the event of default, a secured creditor must, in a single action, first exhaust all its security as a condition of obtaining a monetary deficiency judgment against the debtor personally. If the secured creditor does not resort to all its security before obtaining a money judgment on the debt, the secured creditor may be deemed to have made an "election of remedies" and to have waived the balance of its security.
Feel free to ask if you've further queries.
Sussane
Which states follow the single action law?
Hi Guest!
Welcome to forums!
As far as I know, the single action rule is applied in the state of California.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, the single action rule is applied in the state of California.
Feel free to ask if you've further queries.
Sussane