If I own two houses and have to default on my loan and foreclose on one of them, does that affect my other house? Could they take it? Would I owe the bank money, or would they just take the house I defaulted on?
The reason I ask is that we want to sell one of our homes, but the real estate agent said even if we sold at market value we’d have to PAY $8,000 to sell it. I’ve paid my mortgage on time EVERY month for three years, have remodeled the house, installed a solar power system… But what if the sh*&t hits the fan and we can’t pay our mortgage a year from now???
Can I just move into my other home (a run down trailer on a 10 acres) or would my one foreclosure affect the other? This is a separate mortgage with a different bank.
Thanks!!!
chatsplas said:
Jun 24, 09 at 3:13 pmKEEP reading the news and find out about the programs pushed by the Obama team on mortgage modifications.
Foreclosure on one property can impact another property. Foreclosure on your home should not result in deficiency judgment under new protections.
Any foreclosure has tremendous impact on your credit rating.
Ed_Atun said:
Jun 24, 09 at 11:12 pmOn your personal residence, most states let the lender take the house; and nothing more.
On rental houses, you are not protected. In theory: The bank will take possession of the house. They will re-sell it. The "loss" will be the difference between the loan and the sale price. YOu owe that money. They have the right to come after you for it. They can go to court and get a court judgement for it. Your credit score will drop under 600.
But in real life, the banks have not been going after you for the "loss". Because you usually don’t have any money. If you had money you would have kept the house. But they have the right to go after you and some banks probably will..