mortgage forclosure

Guest 0.10 Dollars($)

I have question. We have 2 house and we can't afford paying the other house. If we put the other house into forclosure procedure are we gonna loose the other house also. We concern that stuff because I was told that if we put the other house into forcosure proceeding they will get our other house also but we're making payment ontime on the other house.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Jenjen,

Welcome to the forum.

If you cannot afford to pay for your first house any longer, foreclosure will happen on that house and not the other house. But if the loan balance is not fully recovered with the foreclosure, the lender may pass a judgment against you in the court and if necessary they may place a lien against your second house to recover the due amount of loan.

And why are you going for foreclosure on your house? Have you not talked to your lender about any loss mitigation plans to avoid the foreclosure? To know how you can avoid foreclosure through the loss mitigation plans, you can refer to http://www.mortgagefit.com/loss-mitigation.html

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

Yes I would also say that try to avoid foreclosure if possible. It will result in your credit score dropping by quite a lot and affect your future borrowing options.

Like Larry said first try out any loss mitigation plan before considering foreclosure. It should always be the last option to think of.

Miller

Niicss · Posted: Mon Aug 27, 2007 11:57 am Post subject:

Did you ask them about a deed in lieu of foreclosure.

If they accept this option then getting a deficiency judgement for recovery of balance dues (if any) will not be the concern.

The reason is that most lenders waive their rights to go for deficiency judgment after accepting the house through a deed in lieu of foreclosure.

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