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Can foreclosure be barred via res judicata?

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?

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. 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 attorney client relationship. It is recommended that you meet with an attorney to receive a thorough and confidential review of your legal problem.


  2. 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 California bankruptcy matters, the information provided herein does not create an attorney client relationship and is not a substitute for having a consultation with a bankruptcy attorney. It is important to have a consultation with a bankruptcy attorney as the information provided in this forum is limited and cannot possibly cover all potential issues in a given situation.


  3. 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 response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Illinois. Responses are answers to general legal questions and the receiver of such question should consult a local attorney for specific answers to questions.

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