Full question:
Can a bank lender foreclose for default of reimbursement of property tax pd by lender and failure to pay into new tax escrow account when borrower is only the husband who is only signer of the note & resident is occupied by husband & wife. Original note payments are not if default.
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Indiana
Answer:
Yes, a lender can foreclose for default on the loan contract, even if one occupant is not a signer. The ownership on the deed is separate from the loan liability of the signers. Typically, paying property taxes is a requirement of the loan. Therefore, failing to pay these taxes can be considered a default, which may lead to foreclosure.
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