The definition of in rem in real estate is a legal case against a property rather than a person. The legal application of in rem in real estate is most often seen when a homeowner defaults on their mortgage and the bank forecloses on the property. In such cases, the court must be located in the same county as the property being prosecuted.
Example of in rem in real estate
Will is an ambitious software developer living in the heart of the Silicon Valley. After designing and selling the rights to a successful ride-sharing app, Will suddenly finds himself in the possession of a large sum of money. As many newly wealthy individuals often do, Will quickly bought an extravagant home in an affluent neighborhood.
However, things would not continue to go well for Will. The tech game is a cutthroat place, and those who don’t continuously innovate are rapidly left behind. As project after project fails, Will’s bank account shrinks further and further, and before long he is deep in debt, due to his lavish but unsustainable lifestyle.
Before long, the bank comes around looking for its monthly payment, and Will is unable to pay. The next month, the situation remains the same, and by the third month the house is marked for repossession. With his credit score at an all time low and nowhere to turn, Will packs up his belongings and leaves the house, unable or unwilling to face the consequences of his choices.
With Will nowhere to be found, the bank proceeds to file an in rem case against the property itself. With no objections, the case proceeds, and in a very short period of time the bank has foreclosed on the home. This is an example of how in rem is used in real estate.
Popular Real Estate Terms
The definition of accommodation covers different meanings of the word, but they all express providing space, room, either physical or metaphorical. In other words, accommodation can be ...
Provision in a loan agreement where a debtor authorizes a judgment against him in the event of a default. These agreements are widely restricted, but when they are lawful, the creditor is ...
If buyers are considering a home with an assumable mortgage at a fair interest rate or if the sellers have already paid their mortgage, remember to consider seller financing. With seller ...
Clause in a mortgage that allows the borrower to pay more than the monthly amount and to retire the loan early without a penalty. ...
Governmental body having the responsibility for planning the future development of a jurisdictional area. A planning commission is responsible for developing and managing a zoning ordinance ...
A fund constituted in certain states to compensate aggrieved individuals who incurred losses in a real estate transaction associated with a licensed real estate broker or agent. Normally, ...
Directly enhancing the physical nature of the property such as renovating the building, installing a new driveway and parking lot, and gardening. ...
What Is a Real Estate Bubble? One definition for a real estate bubble is the fast increase in prices, usually driven by investors and speculators in major urban areas. Properties are ...
In general terms, the upside potential signifies the potential of a present investment, be it an asset or property, to bring a profit for the investor in the future. This measure enables ...
Comments for In Rem
Looking for foreclosure properties.
Sep 22, 2024 16:50:55Hi Evelyn thank you for reaching out to us today. please click this link and view the agents we have in the area that would be happy to assist you. https://www.realestateagent.com/real-estate-directory/new-york-city_ny.html
Good Luck -- Have a Great Day!!!!
Oct 08, 2024 14:52:58On a land parcel map, what do the letters REM before the lot number mean?
May 27, 2021 20:07:26Hey Maia! Thank you for reaching out to us. The letters REM on land parcel maps are an abbreviation for "remainder areas". When a parcel is split into smaller lots, we can find that notation on the remaining area on each side of the lot in question, along with information about the remainder area. In older drawings that showed how the land was sectioned, remained areas were noted with "left" or "right", depending on which side of the lot they were. Nowadays, the notation changed to REM for any area left outside of a parcel lot, regardless of its position to the lot in question.
Jun 03, 2021 11:39:47Have a question or comment?
We're here to help.