I have a house that I have been paying on time for the past 20 years. I recently bought a new house but with all the changes in the market, cant afford to pay my new one. The bank sent me a letter threatening to reposess my assets. Can my first house be reposessed as well. Help Please What is the worst they can do?
2007-09-24 08:09:15 · 7 answers · asked by bebe 2 in Business & Finance ➔ Renting & Real Estate
Normally all the lender will do is foreclose on the property in which you offered for collateral.
If you have another property and it is not in your contract you signed then in all probability they will not try and foreclose on it.
They knew what the value of the property was that is why they took it as collateral and did not sign your other property on to
the loan docs you signed for the second house.
What everyone here is speaking of is a deficiency judgment,which the lender could do, but in all the research I have conducted there has only been one time they have attempted to get a deficiency judgment against a couple was when the house burned down. The lender won.
Now you should contact the lender and see if there is something you can do about keeping the property or work something out with the lender.
You might be able to offer the property to the lender as a deed-in-lieu of foreclosure.
There are other programs you might be qualified for so make sure you ask if they have any programs to help you.
Don't speak to the first person that answer the phone, ask for the Loss Mitigation Manager of the company. Don't be deterred, hang on until you talk to someone in that department.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-09-24 09:33:57 · answer #1 · answered by loanmasterone 7 · 0⤊ 1⤋
They'll foreclose on your new house & sell it. If that doesn't pay the mortgage off, they'll get a judgment and slap a lein on your first house and FORCE a foreclosure to get their money. They can also garnish your wages and make you sell any personal property of value in order to get their money. The more of a judgment they have against you, the more likely they'll be to do this.
You'll also never be able to get another personal loan or mortgage while the judgment exists.
Your inability to pay has nothing to do with the current market. It sounds like you had an ARM and didn't refinance before the rates increased - how is that anyone's fault but your own? Tsk tsk.
You're going to lose BOTH homes and all your stuff, that's the worst that can happen.
2007-09-24 15:19:55 · answer #2 · answered by Roland'sMommy 6 · 0⤊ 1⤋
THE bank can start by forclosing on the asset that you have pledged as security; namly the new house and the loan on it. If they complete foreclosure on it, and there is a deficency balance still owed them they can gain a judgement and file a lien on your other property that will have to be addressed according to the laws of your state; in some cases they can foreclose to pay the defiency balance; in most states they can't.
2007-09-24 15:18:48 · answer #3 · answered by wizjp 7 · 0⤊ 0⤋
Oh yes, they can take your assets for what you owe on the new house. Why dont you put the new house up for sale? dont let it get out of hand. Call the bank and make some arrangements so you dont lose both your houses. Even if you still pay for the first house, they can take it.
2007-09-24 15:18:55 · answer #4 · answered by canam 7 · 2⤊ 0⤋
They can foreclose on the second home and you ruin your credit. Call the lender and discuss your options. Do not avoid talking to them. Do not be fearful. Is your financial situation a short term one or a long term one? Can you rent the second home for enough to cover or defray a large portion of the mortgage payments?
If you are desperate to sell the second home try calling the people at HouseBuyerNetwork.com to see if they have an investor or quick sale agent in your area to help you avoid foreclosure if that is your last resort.
Good luck!
2007-09-24 15:20:32 · answer #5 · answered by Christiane 3 · 0⤊ 1⤋
As long as one is your primary residence they can not touch that. If not your are in trouble.
2007-09-24 15:13:30 · answer #6 · answered by Questioner 3 · 0⤊ 2⤋
yes they can take everything you own to get their money.
2007-09-24 15:16:42 · answer #7 · answered by Volsfan 4 · 1⤊ 1⤋