Can't pay for the 2nd home any more and they are going to foreclose on it can they come after my 1st home equity, 401k, and other assets ?
2006-11-07 03:11:36 · 5 answers · asked by Daryl J 1 in Business & Finance ➔ Renting & Real Estate
Typically, a lender has two sources as a secondary source of repayment ; 1) They can liquidate the collateral thru a foreclosure action and/or; 2) Recourse to the borrower in the event of a recourse loan. So. potentially, a lender can come after the borrower's other personal assets which may include any other real estate such as a primary residence. However, that said, their claim will be secondary to any prior liens (i.e. the existing first trust mortgage on the real estate). For most lenders, liquidation of the collateral is usually the preferred route unless the borrower has a high net worth consisting of liquid assets, in which case going after the other assets including his primary residence, might be a good move.
2006-11-07 06:45:38 · answer #1 · answered by boston857 5 · 0⤊ 0⤋
Yes and No...No they can't forclose on the first property w/o a lien on it, however, if the second house is sold for less than what is owed then you are liable for the difference. They can go to court and obtain a judgement against you for the balance. You then need to pay that amount. Failure to do so allows them to go back to court and obtain a seizure of asset order from the court. With this they can get a lien on your house as well as bank accounts. They can then through court order take the money available in them or have the house ordered to be sold if the judge is so inclined. If he is not the lien is still there and you will have to pay it with interest when that house is sold.
2006-11-07 04:02:12 · answer #2 · answered by Jim7368 3 · 0⤊ 0⤋
No. The asset is secured by its own collateral and any other assets you have cannot be touched by the lending institution . . . . . . . .that is, as long as bush doesn't get involved.
Don't forget to vote today.
Darryl S.
2006-11-07 03:18:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Read your loan agreement, but most likely the only collateral on the loan is the home itself.
-MM
2006-11-07 03:13:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The Ultimate Blonde!
2016-05-22 07:29:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋