Posted on: 28th Apr, 2007 03:17 pm
I own 2 properties, what happens if one propertyis foreclosed
Hi West,
Lender will have the right to recover his dues from sale of this particular property only. It will not affect the other property you have as the mortgage lien was only on the property which is being foreclosed.
Lender will have the right to recover his dues from sale of this particular property only. It will not affect the other property you have as the mortgage lien was only on the property which is being foreclosed.
But I would say a deficiency judgment is also possible if the foreclosure sale does not result in recovery of full mortgage dues. If deficiency judgment is granted then lien can be placed on other property for recovery of balance dues by lender.
Miller
Miller
avoiding foreclosure would be better as it affects credit score and score goes down by quite a bit after foreclosure apart from the chances that lender sues to get a deficiency judgment against you.
a deed in lieu of foreclosure would be better than foreclosure where you can ask the lender to waive his right to sue for getting a deficiency judgment. in such situation your 2nd property will not be affected.
a deed in lieu of foreclosure would be better than foreclosure where you can ask the lender to waive his right to sue for getting a deficiency judgment. in such situation your 2nd property will not be affected.
hi west,
how many defaults on the loan? did you try to start a repayment or forbearance plan? these are called loss mitigation plans which can be used if there are financial problems because of which you are not able to make payments.
a new payment plan can be started which you can afford or payments stopped for some months for you to recover financially then continue making payments. if you would like to get more information about the different options you have, then please go through this page: http://www.mortgagefit.com/loss-mitigation.html
do let me know if you have any other questions.
thanks
blue
how many defaults on the loan? did you try to start a repayment or forbearance plan? these are called loss mitigation plans which can be used if there are financial problems because of which you are not able to make payments.
a new payment plan can be started which you can afford or payments stopped for some months for you to recover financially then continue making payments. if you would like to get more information about the different options you have, then please go through this page: http://www.mortgagefit.com/loss-mitigation.html
do let me know if you have any other questions.
thanks
blue
No West, it cannot affect your other property. The lender foreclosing one loan will try to retrieve his invested amount by selling off the property through an auction. He will not try to take away the other property as it acts as the collateral for a different loan. Legally, this is not possible. But the lender can place a lien on the other property if you cannot pay for the deficiency, in case there is any (and if your state does not follow the anti-deficiency laws) .
However, your credit score will drop down when the loan is foreclosed by the lender. And, any such negative item stays on your credit report for a period of 7 long years.
Good luck
However, your credit score will drop down when the loan is foreclosed by the lender. And, any such negative item stays on your credit report for a period of 7 long years.
Good luck