Foreclosure Of SEC Frozen Assets?
I was looking over the NODs recently and I noticed a house in a wealthy section of town. I did an internet search on the owner and found out that he is going to trial for securities fraud. The SEC has frozen all of his assets including his home which they say he bought with company funds.
I am wondering if the bank can start the foreclosure process? From my understanding, he can't sell any of his assets including the house.[ Edited by dstudeba on Date 06/04/2004 ]
Yes, the bank can file foreclosure. Loosing your house to a judicial proceeding does not constitute the sale of an asset.
Now the owner may be able to convince the foreclosure judge to hold the foreclosure proceedings while the SEC case happens on the grounds that if his assets are unfrozen he can cure the default. He may even be able to convince the judge in the SEC case to release sufficient of his assets to let him pay his mortgage and buy groceries. But yes, the bank can file.