Can a Bank Foreclose for Nonpayment of Taxes if an Occupant Isn't Named on the Loan?
Full Question:
Can a bank lender foreclose for default of reimbursement of property tax pd by lender and failure to pay into new tax escrow account when borrower is only the husband who is only signer of the note & resident is occupied by husband & wife. Original note payments are not if default.
06/05/2011 |
Category: Real Property ยป Foreclosure |
State: Indiana |
#24972
Answer:
Yes, it is possible for a lender to foreclose for a default in the loan contract even in one of the occupants isn't named on the loan. Ownership as named on the deed is a separate issue from liability for the loan by the parties who sign the loan. Typically, payment of taxes is a condition of the loan, so failure to pay such taxes is deemed a default on the loan contract which can trigger foreclosure.
