Legal Question in Real Estate Law in Pennsylvania

Re: PA Real Estate

You asked about foreclosure.

In a simple answer, yes. If the other foreclosures leave a deficit then the lenders can seek a recovery on the deficit. This would need to be reduced to a separate judgment and then enforced by a sheriff's sale (if it even went so far).

For example, there are three leveraged properties and one property free and clear. The leveraged properties have liens totaling $500K. The lenders foreclose and only recover $350K. That leaves a deficit of $150K (plus the lender's fees and costs of foreclosure). The lender can either write off the deficit (often done if there are few assets to chase) or the lender can reduce the unsecured deficit to a judgment. That judgment can then be enforced against the remaining assets of the borrower. This does include a possible lien and foreclosure on the free and clear property. Bankruptcy could be a very good option in this circumstance depending on the entire financial picture of the borrowers.

Get help from an attorney immediately.

Regards,

Roger