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carolinavalenzuela78 · Joined: 25 Sep 2007 Posts: 1 1.33 Dollars($)

Can lender place a lien on my 2nd home?

Posted: Tue Sep 25, 2007 9:09 pm Post subject:

Hi Carolina,

I think the lender can place a lien on your second house provided he is unable to recover the due balance of the loan.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Carolina,

After doing a short sale on your first house, the lender can seek a deficiency judgment in the court so that you pay for the difference between the due balance of the loan and the home sale price. And if you do not repay it, you may have to pay tax to the IRS on the forgiven amount.

But it is not possible for the lender to place a lien on your second home for short sale on your first home as the former is a complete different property.

Guest

Hi,

It is a different issue all together. Your lender cannot place a lien on your second property if you go for a short sale with the first one. If you have any deficit amount after short sale, your lender might either forgive the amount or appeal to the court for deficiency judgement. You may have to pay tax on this forgiven amount but if you manage to make up the deficit later you can claim a refund for the total tax you have paid on this deficit amount.

evolovik26 · Posted: Wed Sep 26, 2007 9:59 am Post subject:

The whole point of short sale is that the bank forgives the unpaid ammount and accepts the shortsale price as the balance paid/setteled in full.
The problem that you are going to have is proving that you cannot pay for the house in full to the bank.

jameswells · Posted: Wed Sep 26, 2007 12:41 pm Post subject:

As stated above- the 2 properties are totally separate and they would not have a legal right to place a lien on your other property unless the courts provide a judgment on the deficiency balance.

Good luck with selling the home!

livinginnky · Posted: Wed Sep 26, 2007 8:23 pm Post subject:

You should talk to an attorney. It all depends on the situation. So it is possible.

And as stated above you may also have to pay income taxes on the difference of any short monies.

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I have 2 Properties. I am doing a shortsale on 1 or possible