What happens to the mortgage when a home is sold on tax auction that is still in the owners name but the bank has possession?

Asked over 1 year ago - Beaverton, OR

If a bank has possession of a property for greater than a year and the owner of record cannot enter or occupy the property, and it is later sold through an auction, what happens to the debts and the mortgage? And if the owner of record is held liable for the debts is there recourse?

Attorney answers (3)

  1. Christopher L Cauble

    Contributor Level 12

    3

    Lawyers agree

    Answered . Your question makes no sense because you would have been able to occupy the property all the way until the foreclosure sale. Also, I would need to know what kind of foreclosure it was (judicial or non-judicial) to know whether or not there is a deficiency judgment. It looks to me that you are concerned about the bank going after you for more money. I need to know more facts. I can arrange a consultation with you if you contact my office by phone or email. 541-476-8825

  2. Diane L Drain

    Pro

    Contributor Level 15

    3

    Lawyers agree

    Answered . You need to talk to a good real estate/foreclosure attorney licensed in the state where the property is located. Your "facts" are confusing, which leads me to think that you might be confused as to title issues.

    My best to you.

    This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the... more
  3. Bruce Givner

    Pro

    Contributor Level 18

    Answered . As the other lawyers have indicated, your facts are not crystal clear. Let me guess: if the home is sold by the county or state due to the nonpayment of taxes, the buyer at the auction may buy the property subject to the mortgage. So it just depends upon the facts. It is unlikely that the property owner has personally liability for the mortgage, but you have to read the mortgage to be certain and it is also probably based on Oregon law. So you have no choice but to hire a lawyer in Oregon to hold your hand through this process.

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