I have two houses primary and second home.IF I forclose my 2nd house ,how It will effect my first house?

Question

e.g lien etc

Answer 1

depends on the type of foreclosure and the state in which you were foreclosed on.

Judicial foreclosure, they will attach a judgment lien on your primary residence. Non-judicial foreclosure, they will 1099 you the loss.

Have you considered a short sale? I can help.

Answer 2

I'm not positive but I think that they would put a lien on your first home in the amount of the difference between the amount owed and the amount they sell the second home for. If there is no difference and they get what you owe, then it just looks really bad on your credit but there won't be a lien.

Answer 3

They can take you to court for a judgment on you, in which case if you ever sell the first home, they will get what they are owed plus interest and penalties, and possibly garnish your wages, take your tax returns etc.
If they write off the loss you will get a 1099 for income earned and the taxing bodies (Irs, State, Local) will expect taxes to be paid on that income which in in the rate as is you received a bonus (30-36%) THe IRS can and will put a lien on your home if payment arrangements are not made, actually come to think about it, they can take it and sell it for the taxes owed.

Answer 4

There is no cut and dry answer. A lot depends how your mortgage is written. They could put a lien on it for the difference of mortgage balance and foreclosure sale. It certainly would hurt your credit rating. You could try a "short sale" (talk to a realtor) or negotiate with the mortgage holder to give the deed back to them. Then you may be liable for taxes to the IRS. Again, it depends how much you owe on this.

Answer 5

both answers are wrong there is no relationship between the two homes and no way the debt on one can jump to the second. call a title company if you dont believe me