What rights does a lender/loan purchaser lose by being negligent?
posted 3 years ago
A lender signed a mortgage on a home that was defaulted. The lender waited for years before foreclosing. Later, the borrower declared bankruptcy and the house was sold. Is it a reliable statement that the lender has "different" rights to the principal and interest? For instance, the mortgage fully secures the principal, however, the lender should get in line with other unsecured creditors for the interest in bankruptcy?
- Banking and Financial