What is an In Rem Judgment in a Foreclosure?

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This question came from Avvo.com:

My condo was sold at sheriff’s auction and the foreclosing bank was the purchaser.
I have received Notice of Motion for Order Approving the Sale.It says “That there shall be an IN REM deficiency judgment entered in the sum of ($**,***.**), with interest thereon as provided by statute against the subject property.”Does it mean I am personally liable for this amount? Then it says “That the Plaintiff will not pursue collection of the note” .

My answer:

From what you mentioned, the mortgage company will not be able to sue you for the deficiency. It is important that you discuss any other debt situations you might have with an experienced attorney. It is also important that you review your possible responsibility for any unpaid condo association dues.

Another term that the question didn’t address: If the Judgment was “in personam” that means that the former owner is personally responsible for the money deficiency. Also be sure to watch for that when you are attempting to defend a foreclosure lawsuit. It is best to speak with an attorney who is experienced in bankruptcy and foreclosure defense if you are faced with these types of situations.

Daniel J. Winter
BankruptcyLawChicago.com
djw@DWinterLaw.com
312-789-9999
Offices in Chicago, Gurnee, Oak Lawn, Skokie and Waukegan, Illinois.

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