Can foreclosure be barred via res judicata?

Asked 10 months ago - Chicago, IL

If a bank receives a default judgment on its claim of a defaulted promissory note, and as its relief it requests the appointment of a receiver to collect rents that certain properties produce in order to put towards the debt, can the bank later foreclose on the property if in fact it was collecting on its relief sought?

Additional information

The question may require a little more thought because the receiver was the banks main cause of action. it was not ancillary to another cause of action. In essence it was the only relief requested for the default.....thinking outside of the box may be required here.

Attorney answers (4)

  1. Karen Jackson Porter

    Pro

    Contributor Level 12

    9

    Lawyers agree

    Answered . Yes, the Bank can foreclose after the appointment of a receiver. The appointment of the receiver is to protect the banks interest. The granting of the banks request does not end the foreclosure case. After the receiver is appointed, you are still in foreclosure. I hope this case works out for you.

    Karen J. Porter is licensed in the State of Illinois. An answer to a question on this site does not create an... more
  2. Christine B. Adams

    Pro

    Contributor Level 20

    6

    Lawyers agree

    Answered . Attorney Porter is correct.

  3. Shaye Larkin

    Contributor Level 20

    3

    Lawyers agree

    Answered . Ms. Porter has given you the correct advice.

    While I would love to be your attorney and you may call my office any time to schedule a FREE consultation on... more
  4. Marc Gregory Wagman

    Contributor Level 17

    Answered . Twos types of relief and lawsuits are presented here which is not res judicata. One for suit on the note and a receiver and then later a foreclosure to get the property back through that process.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The... more

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