News & Insights

Some states limit what a bank can do after a mortgage default. Mitchell Sussman explains that the one action rule allows a lender to choose only one path when a borrower stops paying. The bank can either foreclose on the home or file a lawsuit to collect the debt, but it cannot do both.

Mitchell Sussman explains that walking away from a house is not the same in every state. Some states protect the homeowner, while others still let the bank sue for the loan.