Foreclosure Duplexes
Can a bank foreclose on unsecured property in Ohio?
I have a Duplex with a line of credit I am thinking about purchasing a four unit apartment building cash offer. If I default on the loan and the bank takes back the Duplex and sells it at foreclosure auction or when it becomes bank owned and not all of the debt is satisfied with the sale of the Duplex can they foreclose on the four unit building even though the property was not Secured by the loan? I am hearing different things from different people, but I thought a judgement lein just sits on the property acruing interest and it prevents you from selling the property unitil the judgement is satisfied. For example it is very rare that a bank could foreclose on a house because of credit card debit. Please cite relevant Ohio revised codes. Please answer if you are experienced in this area.
You are correct.
The bank can obtain a judgement against you for unpaid balances of a secured property (multi family in this case), and then have liens placed upon your other assets. They can not however foreclose on those properties to obtain payment. They can also lien your bank accounts, and in certain states, they can seize funds, and garnish wages for payment.
South Austin Foreclosure Duplex 2.qt
