Legal Question in Real Estate Law in Indiana

Potential foreclosure on a rental property

A rental property owned by my son-in-law is about to go into foreclosure because of unpaid mortgage payments by his father who has since left the country. (Soninlaw was very young when he signed papers and was misled by his father) -- now lender is threatening foreclosure. There is a renter from which current payments can be made but it is $8,000 behind. If they do not pay the $8,000 then it will go into foreclosure and they will have to pay the total for the house of $50.000. I thought foreclosure meant that the bank gets the house not that they still have to pay for it. The property has been for sale with no prospective buyers. Something doesn't seem right about this..... can you help?


Asked on 7/29/08, 8:50 am

1 Answer from Attorneys

Re: Potential foreclosure on a rental property

Your son in law may be responsible for the difference between what the house sells for at foreclosure and the amount owed in excess. Usually, the mortgage company does not pursue that amount, but they do have the right to do so.

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Answered on 7/29/08, 10:31 am


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