How does foreclosure on a home affect a person's credit and assets?

Question

I am wandering, if you have more then 1 home and other property such as land and cars; if u foreclose on one of the homes will the lender have the right to target your other properties to pay off your loan with them? and lets say you owe more then the value of the house will you owe that difference even after foreclosing! I am in CA.

Answer 1

the lender will get a judgement in court and then they can place a lien on any real property that you own to get their money back.

Answer 2

If any of your properties goes into foreclosure the bank has a right to go after any money you have in the bank and any of your assets. These assets can be homes, land, IRA's, bank accounts, cars, virtually anything you own.
They can only go after your primary residence for the value up to the homestead loan. In other words, the homestead part of your primary residence is protected but anything above that is fair game.
The lender can target anything you own to pay off your loan and any penalties. If you owe more than the value of the home, they can retain this too. If this was the only asset you had, they would evict you, and then either try to sell for market value or auction it off to cover the loan owed. Banks lose money all the time when a home owner does not keep current and when they take back a home in foreclosure.

If you value your credit, do not allow this home to be foreclosed upon. It can ruin your credit for 10 years minimum and you will have a hard or impossible time ever buying a car or home again. There are other avenues you could take if you are not too far into foreclosure.

First, try to sell the home yourself with a Realtor. If you paid too much for this home and it is now worth less, sell it and take a loss. You will probably lose your downpayment and any money put into it. But that is better than foreclosure. Or, you can list with ERA as they make offers on homes if they can not sell them. And another choice would be a private lender or buyer who comes to you and makes you an offer. This is usually an investor.
If you can stop the proceedings now while you look at all your options you can do this by making a payment or two. Call the lender and tell them you want to start making payments again to save your home. Ask them if you can make half payments until you catch up. This will buy you time to sell this home. If you make no payments things will go forward rapidly and you may have to be out in a month or two. Try to make some payments and then sell at a loss.
With the escalation in Real Estate values in California in the last five years, coming to a peak last year, many people bought homes at high prices. Now that the market is soft, they are having problems turning them. This has hurt the market and the home owners. Sell and get out now.

Answer 3

Lets take the one at a time. First the lenders do not have the right to come after your other properties.

Second if you owe more and a propertie than its' worth and it forecloses, the bank will auction the propertie off and you will be liable for and balance still due. They can and will get a judgment against you and you wages will be garnished until it's paid.