Legal Question in Credit and Debt Law in Pennsylvania

Re: loan

You asked about a collateralized loan.

The answer is yes and no. The lender can foreclose on the property that secures the loan upon default. But any amount not covered by the foreclosure proceeds (which is usually at a fire sale price) is called a deficit. The deficit is an unsecured debt. If the deficit goes unpaid, the lender could sue to have the unsecured debt reduced to judgment. Upon judgment the creditor could then seize and asset of the debtor to satisfy the deficit/debt.

You need to speak with an attorney to evaluate your options regarding your financial situation. There are options.

Regards,

Roger