Could I lose my home if the other home goes into foreclosure or deed in lieu?

Question

I bought a another home thinking I would be able to sell or rent the older quickly. So far it's been 3 months and I haven't found a buyer or a renter. I couldn't make the payment last month, if worse comes to worse, if were to lose the home to deed in lieu or foreclosure would I lose the new one also that is on a different moertgage with different bank?

Answer 1

Good Morning,

No, you would in no way shape or form have anything effect your new house...

A mortgage company can only foreclose upon a property that they have a lien against... The company you have missed a patment to only has a lien against the OLD house...

So, they can only start proceedings against that property...

Now, i would really advise you to do soemthing NOW, OR YOU WILL PAY FOR IT FOR THE REST OF YOUR LIFE!!!

Wha ti mean is that ever\ytime you are late on a mortgage payment, your credit is RUINED!!! Its not like a credit card, cell phone bill, utility , etc... A mortgage is reported to your credit every single month... Being that a mortgage is typically the largest asset for someone, when you dont pay on time, your creidt is negatively affected..

WHa ti suggest is that you do a cash out refinance NOW!!! You can pull out a little bit of equity from the home to help out with payments until you can find a renter...

Also, you can get qualified on a new mortgage that can give you more options... There are specialized programs out ther especifically designed for real estate investors...

Specifically, someone that is rehabbing houses, or buying rental properties... There are mortgaegs out there that let you have 3 different payment options on a monthly basis..

The options are full principal and interest (what you have now),
Interest only, and MINIMUM PAYMENT...

The minimum payment is what does wonders for someone in your situation... For instance, if your mortgage has a payment of $2000.... Your interest only would be roughly $1700, and your MINIMUM PAYMENT OPTION would only be $!000...

As you can see this gives you the much needed flexibility on a monthly basis....

What i think you should do before any more time goes by is give me a call... Ill take 20 mintutes, gather basic information from you, and answer any questions you may have... At that point i will run some numbers, ans call you back with a detailed analisys...

If yo ulike what you hear, we can move forward, ans close within 20 days... If is doesnt make sense, you arent obligated to a thing...

Ill lleave both my email address and my phone number... Feel free to contact me whn you are free..

Good Luckl!

Jaspon Fry
Licensed Mortgage Banker
Providential Bancorp
[e-mail]
312-264-6448

Answer 2

The short answer is no since they are mortaged by
two different companies. HOWEVER
the new company if they are real unhappy with your credit record next year (should the first company forclose on you) ask you to pay the full amount
OR raise your interest rate. It depends on how your
contract was written.

Most mortgage holder will not start foreclosure
proceedings until you have missed your third payment.Remember they don't want your house, their not in the realestate business.
And keep in mind if they forclose and sell the house
for less than what you have left owing on it that you STILL OWE them the difference plus any costs they incurred for attorneys ect.

Answer 3

Go to your lender, they can put one payment on the end of your note. if bad comes to worse, refinance it and it will start it over.. Or you can ask for a deferrment for a month where you skip a payment. and call your local Section 8 or Housing and talk to them about finding someone suitable for your home. They can lease it for you for a year and you will know that you have at least a for sure payment every month.
As far as foreclosure, you have to be 3 months behind before they can forclose as far as i know.. that is what happened to me... your other home is not at risk unless it is used for collateral for this home.. if it is separate, on a separate loan, no problem. Good luck to you.

Answer 4

Talk to your mortgage company and tell them what you are trying to do, most will work with you and allow you to skip a payment or two, and add it on later. You might even be able to pay interest only for a couple payments.

Answer 5

Well my guess is not to go into foreclosure on your property. I've got investors depending on the ltv of your property give me an address and I’ll take a look at it my self.

Answer 6

You should refinance your house first, if you havn't already, then use that money to pay your payment, you might as well take cash out that you put in if your going to loose your house anyways, or like i said refi, pay your mortgage, and sell it less than whats offered.....if you sell it to a investor, he can save you from being foreclosed, and you can still get cash out...i have 2 investors that help people out with this kind of stuff....feel free to write me anytime, and see if we can help you.

[e-mail]

Answer 7

no they can only put a lien on the home of which you owe the money.