I have two houses, one about to go foreclosure?

Question

I have two houses and im about to lose one because i cant pay it, will the bank add the balance to the one im currently paying? or what will happen? i know i need to get in touch with the bank, but wanted to get some input here, please help :(.

Answer 1

If the two mortgages are somehow tied together I guess they could add one to the other but I have never heard of that.

In Texas the norm is they file a lien on you for the shortfall after foreclosure. That shortfall includes huge fees for legal issues and late charges. It will save you thousands of dollars if you contact them and ask them to help you sell on a "compromise sale" or as some people call it a "short sale". If you can't do that for some reason then explore signing the house back to them directly so that you at least avoid the expense of a foreclosure.

Other states may have far different laws and you should talk to a lawyer to find out what would be best for you.

Answer 2

The bank will not add the balance to your other loan. Do not file bankruptcy! this will only screw up your credit and delay the foreclosure! You can deal with the bank on your own you do not need an attorney. In some cases the bank will put your past due payments on the back end of your loan to bring you current, but only if you can prove your back on your feet again and the reason you defaulted is no longer a factor. Ask if the bank will take interest only payments until you get back on your feet. Ask the bank to give you time to sell the property. if they will do not put the property on the market for what it is worth,but rather what you owe the bank plus expenses. it will sell quicker and you save your credit. And my last bit of advice if all fails and your home goes to foreclosure go to the sale and bid on the property to get the price up close to what you owe because you are still responsible for the balance of the loan. example if you owe 100,000 dollars and the property is purchased for 80,000 you still owe 20,000. and they will lien your other property to get it. If you are high bidder all liens against the property will be wiped out, except property TAXES. Good luck with the bank

Answer 3

If the same bank has mortgages on both houses, it MIGHT be able to add the deficit on one house to the balance due on the other. However, to do this without taking you to court first, the agreement on the other house (the non-foreclosure house) would have to have a "Cross-Collateral" clause, saying the bank can use the house as collateral for all debts you owe the bank. So, you have to read the terms of your loan and your mortgage. I rather doubt they did this, but you never know. But it has to be in writing somewhere.

Answer 4

It is important to realize that when you borrow money that involves a mortgage that the mortgage is not the loan. The document you signed that is an agreement to borrow and repay the money is called the note. If you go to foreclosure but the house does not sell for the amount owed, the lender can still collect on the note against you. They cannot just add it to the other house. They would have to get a judgment and put a lien on the house, make sure you have a homestead on the house you want to protect.. In rare situations people give blanket mortgages that cover more than one piece of real estate, in that case yes they could go after the other house easier. There are numerous ways to deal with your situation better than letting it go to foreclosure: work-out plan, short sale, deed in lieu, chapter 13 bankruptcy.

Answer 5

If your mortgage is at all normal, they cannot add the balance to the other house. Get in touch with a local Realtor who knows about short sales - maybe you can sell the house instead of it getting taken in foreclosure. Banks don't really want to own houses.

Answer 6

That's a really good question....there is a possibility if the foreclosure doesn't pay off the 1st foreclosure that they can petition the court to force the sale of your other home.

I would seriously doubt that the bank would be forced to take a loss when someone is sitting on money.

Answer 7

It depends on how you secured the financing . . . If you financed separately you'll only lose the one with delinquent payments , , , If you financed jointly you could lose both. However, banks are more than willing to negotiate, so don't throw in the towel yet. You can either ask for a better rate or loan or ask for an additional 90 days to sell the house at a discounted price. Most banks do not want to foreclose and will be more than willing to work with you as long as you are reasonable. They lose money if they foreclose . ..

Answer 8

WRECKING your credit would properly be a great difficulty. communicate over with lenders, see in the event that they're going to allow you do a quick sale, loan modification, Deed in Lieu of foreclosure. don't understand why they permit you overextend your self via supplying you with 3 loans, or why you probably did it to your self. Having greater desirable than one property would cause them to much less amenable to working something out, so communicate over with numerous human beings at lender, paintings on them. communicate one after the different, oldest, i'd wager. additionally if this is going, no longer being very own place of abode, you would be taxed on what you haven't any longer paid back, the deficiency judgment, so could have extensive tax impact. permit's say loan of $a hundred,000 for abode of $one hundred twenty,000 fee that's now properly worth $eighty,000 plus foreclosure costs of $15,000, so judgment against you/earnings to you for $$35,000.

Answer 9

why don't you rent it and then foreclose it the foreclosure takes 8-11 months at lease you can collect rent with out paying any mortgage.you are not alone there are so many people that have more.

Answer 10

if the house sell for more than you owe you will get the difference.

if the house sell for less than you owe it will depend on whether you are personally liable for the morgage. odds are you are. then the bank will try and collect the difference from you, eventually it will attach your other house and begin foreclosing on that one too.