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dmcdaniel · Joined: 08 Oct 2009 Posts: 1 1.37 Dollars($)

Have one house with a VA loan, no money down, no equity accumulated, renting it for $400 less than mortgage payment. Own a 2nd house with a large down payment (family loan). Renters are being evicted, owner may be losing his job. Can you let the first house go into foreclosure to save the second house. Can the mortgage company garnish wages or put a lean on the second house. What other ramifications need to be considered. They currently have good credit with 2 mortgages and 2 car loans, and paid up credit cards. If they already have these loans then will a foreclosure affect these already established credit lines.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

You cna let the second house go in to foreclosure, and the lender can come after you for the deficient amount

Better option in this situation would be to as for a deed in lieu, insted of goign for foreclosure

jenkin7 · Posted: Fri Oct 09, 2009 1:58 am Post subject:

Hi dmcdaniel,

You can let the first house go into foreclosure, but you will still be responsible for the deficiency. If you do not pay off the deficiency, the lender can come after you. They can sue you and obtain judgment against you. They can garnish your wages and put lien on your other properties.

Since the house you want to give up is not your primary residence, you cannot claim protection against judgments under the anti-deficiency laws applicable in your state. But the foreclosure will not affect your already established credit lines, though it will affect your credit scores and the possibility of qualifying for a new credit.

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Foreclosure ramifications and options.