What is the difference between a mortgage lender filing a lawsuit to recover from its borrower on a promissory note and a lender who instead elects to file a mortgage foreclosure suit? A suit on a promissory note is in personam. A mortgage foreclosure action is in rem. And now the explanation:
An in personam suit seeks to impose personal liability and the rendition of a personal judgment against the borrower, a judgment which can be collected from any or all of the borrower�s assets. An action in rem seeks only to impose a judgment against a specific thing � in our example, a judgment against the real estate securing the mortgage. Satisfaction of an in rem judgment is limited to the proceeds from the sale of the property against which the action is brought. A judgment in rem does not expose all of the debtor�s assets to sale in order to satisfy the judgment, only those specific assets which were pledged as security for the loan.
– Kevin Palmer