I am concerned. I am in the first stages of this situation and i called the bank the other day telling them i could no longer afford the payment. I would like to work out an afforable payment plan with them but i have my primary residence which has a quite a bit of equity and also another investment property which also has equity in it. i am concerned that they will want to secure the payment plan by possibly placing a lien or something on one of the properties and if i can not afford the pymnt in the future my biggest concern is them taking my own primary residence. also when i got the loan i think they are under the impression that the house that is going into foreclosure is my primary residence.
2007-07-08 10:33:28 · 5 answers · asked by linda m 2 in Business & Finance ➔ Renting & Real Estate
i live in southern ca
2007-07-08 10:38:07 · update #1
I am not a real estate lawyer and I suggest you consult one for legal advice. I am also not a CPA and I suggest you contact one for the adverse effects of your particular situation.
That said, I help people who are in foreclosure in Southern California. And to the best of my knowledge and expertise,
No, they cannot touch your other properties or get a deficiency judgment against you. The worst thing they can do is to 1099 you for any loss.
If you would like to short sale your property to avoid foreclosure, please let me know and I can help you.
Regards
EDIT:
Brian G is incorrect. In California, we are a trust deed state and the loans on real property are secured by the trust deed only. If the lender loses money, then they will most likely issue a 1099 to the IRS against the borrower. If we had judicial foreclosures, then that statement would be correct.
2007-07-08 10:48:26 · answer #1 · answered by Anonymous · 1⤊ 2⤋
Unless you put up your primary residence as collateral, they cannot easily take it if your investment property goes into foreclosure. The investment property would be sold off to pay the amount you still owe. If it did not bring enough to pay off the debt, you are still liable for the difference. If you can't or won't pay that off, then they can go to court for a judgment and order to put a lien on any other property you own.
2007-07-08 10:49:23 · answer #2 · answered by Brian G 6 · 0⤊ 0⤋
If you use one of the other properties as collateral for the property in foreclosure in order to try and save it you could lose it if you can't make the payment in the future. If the property is worth more than you owe on it try and sell it. If you're not sure if you're primary residence is collateral, ask the loan office at your lending institution. You may want to cosult a real estate professional or attorney.
2007-07-08 10:47:33 · answer #3 · answered by MLNICROK 3 · 0⤊ 0⤋
Not likely.
They have no lien on your present residence.
The only way they can place a lien on your residence or other property is if you agree to use either as collateral in order to refinance the investment property.
2007-07-08 10:44:57 · answer #4 · answered by ed 7 · 0⤊ 0⤋
No you will could desire to pay your any capital features tax that could desire to be due on the sale of ths investment components for the tax year of the sale at that ingredient on your existence. desire which you stumble on the above enclosed information useful. 11/14/2011
2016-10-01 04:00:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋