Can a loan company seek a judgement before the foreclosure is complete? 7 Answers as of December 12, 2011

The normal procedure in Georgia is to wait until the foreclosure has taken place. Then, if the company claims the property sold for less than the amount owed, they can file for what is called a confirmation that the property sold for less than was owed. They have to do this within 30 days of the foreclosure in order to bring any action for a claimed difference between what was owed and what the property sold for.

Nevada has a "one action rule" which requires them in most cases to go after the collateral before seeking other remedies. What that means in your case is that if they attempt to get a judgment on a debt secured by property before going after the property, you can usually make a motion to stay the proceedings until the property is dealt with (i.e. until the foreclosure process is completed). You also have the option of allowing them to go forward, and if they get a judgment before completing a foreclosure sale, then the property becomes unencumbered by the debt. In most cases that is unhelpful to you, but there are some circumstances where it can be beneficial.

I assume you took out a personal loan, using your home as collateral. This is a personal obligation and they still have the right to pursue you although the collateral is gone/foreclosed.

In most states, a formal foreclosure process must be completed prior to any loan company having rights to a foreclosure judgment. You should seek the advice of an experienced attorney who can review the documents and proceedings in your particular case to help you evaluate your rights.

They can seek a civil judgment against you, but usually they will finish the foreclosure then seek a judgment on the deficiency, if any, after the auction. If the house is in foreclosure, you may want to retain an attorney to protect your interests in court.

If the lender is the one who is foreclosing, then no, they must get a foreclosure judgment before seeking any other kind of judgment. If this is in regards to a 2nd lien on the property, then yes, they can obtain a money judgment against you by suing you on the note.

Yes on both counts. Although you don't see it very often, the bank can sue you on the note before they foreclose. What I understand from creditors' lawyers, this tactic prevents them from having to worry about the forgiveness of the deficiency provisions that can occur when the bank credit bids at the foreclosure sale (although I don't agree it is a complete defense to same). You see this action mostly in commercial loans where the creditors' lawyers are more active in collection.