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.
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.
Chapter 7 Bankruptcy Attorney
Attorney Porter is correct.
Ms. Porter has given you the correct advice.
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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.
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