If I foreclose on first house- can they take my second house?

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Icon Mini Profile myboxfree





Joined: 09 Apr 2009

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Post Posted: Thu Apr 09, 2009 9:10 am    Post subject: If I foreclose on first house- can they take my second house
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I bought my home in the Phoenix area two years ago and it's value has dropped more then $100,000 since I bought it. I purchased the house with the idea I would sell it within five years and buy another house closer to the city limits, which is where I want to live.

I am thinking about buying the second house now and stop making the mortgage payments on the house I'm currently in (it will never rent for what I owe monthly)

My question is - if I foreclose on the first house, can they come after the second one?
Icon Mini Profile adonis
adonis




Joined: 22 Oct 2005

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Post Posted: Thu Apr 09, 2009 10:02 pm    Post subject:
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Welcome myboxfree,

If you walkaway from the property, the lender will foreclose it and try to sell it off. The lender can sue you for the deficient amount resulting from the sale of the property. If you do not pay the deficient amount, the lender may place lien on your second property.

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Icon Mini Profile myboxfree





Joined: 09 Apr 2009

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Post Posted: Fri Apr 10, 2009 4:37 pm    Post subject:
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Thank you for the reply.
The last thing I want to do is just walk away from this house. I love it the property and it is a great house.

I haven't called my mortgage company yet to see what the Obama stimulus plan could do for me. Is it possible that they will let me refinance at the current appraisal value and forgive the bloated price I paid when I bought it?
Icon Mini Profile jameshogg
jameshogg




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Post Posted: Fri Apr 10, 2009 9:29 pm    Post subject:
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Hi myboxfree,

According to the new Home Affordable refinance Program announced by the Obama Government, you'll be eligible to refinance up to 105% of the value of your home. You will be considered eligible for the program only if you own and currently occupy a one- to four-unit home. Apart from this, you should be current on your mortgage payments and your mortgage should be owned by Fannie Mae or Freddie Mac. You should also have a stable income sufficient to support the new mortgage payments.

You can check this with your lender. Hope this helps you.

Thanks
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