Legal Question in Real Estate Law in Nebraska

Not served notice of foreclosure

About 10 years ago, I agreed to be guarantor on a mortgage. As I was on contract overseas, I spoke with the bank manager and told her I would only agree to be guarantor for the term of the mortgage (3 yrs). She agreed, saying at the end of that term I would ''come off the mortgage and the other people could renew on their own.'' I was not stipulated as guarantor (my name does not appear) on the mortgage renewal at the end of 3 yrs. Problems arose, the property was abandoned and foreclosure proceeded. The property has been sold and the bank is looking to me for the deficiency. Although the bank manager had my address, phone numbers, etc. overseas, I have never received any communication from them. The borrowers have never received any notices either. What is my position here? Did the bank follow proper procedure in foreclosing this property?


Asked on 9/05/05, 10:52 am

1 Answer from Attorneys
Michael McClellan Gast & McClellan

Re: Not served notice of foreclosure

There are restrictions in the law on when a guaranty would be effective for a renewal of a loan. These are fact questions. A lawyer would need to know more specifics before giving the answer to whether the guaranty was effective and also whether the foreclosure was proper.

But there are issues and possible defenses . . .

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Answered on 9/05/05, 4:16 pm


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