Legal Question in Real Estate Law in North Carolina

Can a bank foreclose on property if the property no longer belongs to the borrower?

Asked on 10/14/13, 9:13 am

2 Answers from Attorneys

Kenneth Love Ken Love Law

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.

Read more
Answered on 10/14/13, 9:24 am

Jeff Rosner Rosner Law Firm P.A.

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

- Jeff

Read more
Answered on 10/14/13, 10:08 am

Related Questions & Answers

More Real Estate and Real Property questions and answers in North Carolina