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How can I vacate a judgment after a mortgage assignment and foreclosure?

How can I vacate a judgment after a mortgage assignment and foreclosure?

Full question:

Bank A assigned loan & mortgage to Bank B. Bank A had started legal foreclosure before assignment. Bank B never recorded its new interest but continued the foreclosure suit under the now-non-existant Bank A's name. How can I get judgment vacated?

Category: Real Property
Subcategory: Foreclosure
Date: 04/07/2025
State: Pennsylvania

Answer:

Standing refers to a party's ability to bring a lawsuit based on their stake in the outcome. To demonstrate standing, a party must show a sufficient connection to and harm from the law or action challenged. If a lender sells or assigns a mortgage, the purchaser takes the lender's place regarding the right to receive payment or enforce the security interest, including foreclosure.

The ability to vacate a judgment depends on the specific circumstances and reasons for the request. Since we cannot provide legal advice, it is advisable to consult a local attorney who can review all relevant facts and documents.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can a bank come after you after a short sale?

Yes, a bank can pursue a deficiency judgment after a short sale if the sale does not cover the total amount owed on the mortgage. This means they may seek to recover the remaining balance from the borrower. However, some states have laws that protect borrowers from such actions, so it's essential to check local regulations. Consulting with a legal professional can help clarify your specific situation and rights.

Does assignment of mortgage mean foreclosure?

No, an assignment of mortgage does not automatically mean foreclosure. An assignment simply transfers the lender's rights to another party. Foreclosure is a separate legal process initiated when a borrower defaults on their loan. The new lender must follow the proper legal procedures to foreclose, and if they do not record their interest, it may complicate the process.

Can a bank come after you after foreclosure?

Yes, a bank may pursue a deficiency judgment after foreclosure if the sale of the property does not cover the outstanding mortgage balance. This means they can seek to recover the difference from the borrower. However, laws vary by state, and some states have protections against deficiency judgments. It's advisable to consult with a legal expert to understand your rights and options.

What happens if an assignment of a mortgage is not recorded?

If an assignment of a mortgage is not recorded, it may create complications in enforcing the mortgage rights. The original lender may still appear to hold the interest in the mortgage, which can affect foreclosure proceedings. Additionally, unrecorded assignments may lead to disputes about who has the legal right to collect payments or initiate foreclosure. It's essential to ensure that all assignments are properly recorded to avoid these issues.

Does a short sale avoid foreclosure?

Yes, a short sale can prevent foreclosure if the lender agrees to sell the property for less than the outstanding mortgage balance. This process allows the homeowner to sell the property and settle the debt without going through foreclosure. However, the lender must approve the short sale, and it typically involves negotiations. Consulting with a real estate attorney can help navigate this process.

What happens after a short sale?

After a short sale, the lender will typically release the borrower from the mortgage obligation, assuming the sale is approved. The borrower may receive a 1099 form for any forgiven debt, which could have tax implications. It's important to check if the lender will pursue a deficiency judgment. Consulting with a tax professional and a legal expert can help clarify the consequences of a short sale.