Legal Question in Real Estate Law in Pennsylvania
bank foreclosure
the bank foreclosed on my income properties. one of the properties was located in a different county. the bank never brought the property to sheriff sale. they issued a deficiency judgement against me and never considered the property in the other county. after reporting the deficiency judgement to the IRS they are still sending me monthly statements to pay them as well as the IRS. Is all of this legal?
1 Answer from Attorneys
Re: bank foreclosure
There is a law enacted in the 1940s known as the Deficiency Judgment Act. It applies in a limited situation. When a creditor takes real estate to sheriff�s sale and is the successful bidder, they must file a Petition to Fix Fair Market Value within 6 months of the sale. The purpose is to judicially determine the amount actually still owed by giving credit for what was received by the creditor.
It is not clear from your inquiry what you mean by �deficiency judgment� since you also state they took no property to sale. If they simply sued on a note, they are free to do that and pursue you on any assets at all and all at the same time.
I trust this answers your question but you should consult with counsel in the near future to be sure you protect your rights.
Feel free to call or E-mail me on a free initial basis.
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