Can a bank foreclose on property if the property no longer belongs to the borrower?
2 Answers from Attorneys
More information is needed. But I am assuming you are saying that a property owner deeded the property to someone else while the bank had a mortgage on it. Under these circumstances, yes the mortgage company can foreclose and in fact, the transfer may b a default under the deed of trust which allows them to foreclose even if the loan is current.
If you are asking a general question - Yes a bank can foreclose on property that no longer belongs to the borrower. Each specific circumstance may be different but a bank does not lose a security interest in the land just because property is conveyed to a new borrower. There are circumstances where the bank's deed of trust could be wiped out but you would need to speak to an attorney about the specific circumstances