Legal Question in Real Estate Law in Pennsylvania

Re: Lien on home

I have read the replies to you from Mr. Davies and Mr. Davidson both of which contain good advice and are competent replies. It seems to me, however, that neither actually answered your question. Let me pick up where Mr. Davidson left off.

If a forclosure sale comes up short of what you owe (including allowable costs and expenses), the lender can take you to court for the difference. It is likely that PA would be the appropriate jurisdiction for that. If the lender obtains a judgment against you in PA, it can pursue its collection remedies in PA. It can also "docket the judgment" in NJ with a simple suit in NJ. In that suit, you cannot raise defenses on the merits because those have presumably been resolve in PA. You probably would not have any additional defenses and the NJ judgment would become a matter of record. At that point, the lender could obtain a lien on all of your real property in NJ. The lender would also be entitled to all of NJ's other collection procedures such as garnishment and levy of personal property.

The result is the same for the other States. The US Constitution requires every State to give "full faith and credit" to judgments of the other States. The procedures and remedies differ somewhat from State to State, but the result is pretty much the same.

Mr. Davies is correct in that your best course is to address the issue in PA.

Re: Lien on home

Well first they already have a lien on the property in Pennsylvania. If you don't pay the loan they will foreclose. When they do they will attempt to sell that property. Depending on how much the lender gets from the sale of the foreclosed property will determines what happens next.

Possibility 1: The sale nets less than the amount of the loan and foreclosure expenses. Then because you signed a promissory note that makes you personally liable they will hit you for the shortfall.

This is very likely.

Possibility 2: The sale nets more than the amount of the loan and foreclosure expenses. In which case you get the excess.

This is very unlikely.

If you wish to avoid foreclosure try selling the property before foreclosure. You only have to sell it for what is owed to be ahead. Because this isn't a foreclosure sale you might get more for the property. You might ask you lender for some time to pull off a sale. They want money not property so they might be willing to be flexible. At least it never hurts to ask.

{John}

Re: Lien on home

I have read the posting by the Pennsylvania attorney.

I will only add that the attorney did not add that you really need to sit down with an attorney in Pennsylvania, and get some solid legal advice. You will very likely do a lot better by selling the property before any foreclosure takes place, and a Pennsylvania attorney advising you and assisting you will help make that happen.

That attorney sounds like a decent guy, so maybe you should hire him! A consultation would be well worth your money, and could save you a huge amount of grief and money.

If you have troubles with the New Jersey property, or if you want to talk to a NJ attorney, give me a call; I am in northern New Jersey. The telephone consultation will be free. I would be happy to help you out.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

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