If foreclosure occurs on investment house would that result in lien against my homestead.?

Answer 1

Theoretically it could happen, depending on if your state allows deficiency judgments.

However, banks almost never pursue homeowners after the foreclosure. It costs too much money and time to sue you for a deficiency judgment after the sheriff sale. They know they won't be able to collect on the judgment, anyway, since foreclosure victims are not swimming in cash.

In fact, they don't even know where you'll be living after the foreclosure, so suing you in that county might be completely pointless if you will not be able to be served with paperwork, etc. Banks almost never go after deficiency judgments, unless they know you have a lot of other assets and just decided to stop paying the mortgage, instead of facing a lack of income.

Answer 2

It's possible. It would not be a direct result of the foreclosure action, since the collateral property is the investment house. However, the lender could bring suit for the deficiency owed on the investment house, win a judgment, and then seek a lien against the personal house with that judgment.