I have 2 properties, one is a rental one I live in, can the bank take my other or put a lien on it?

Question

I bought my rental 10 years ago, but moved 2 years ago to a nicer, more expensive house, but now I have to sell it or foreclose cause its just too expensive and we have money problems(husband just got laid off). Im going to go back to my first house and live in it, but Im afraid they might put a lien on it or take it or something, HELP

Answer 1

If they foreclose on the newer home and sell the house you may still be liable for any remaining balance, and yes they could then put a lein on your older home.

Answer 2

When you signed your loan docs the only collateral you used were the house on the loan docs.

If your property goes into foreclosure and you lose it, the property reverts back to the bank unless someone buys the property at the foreclosure auction.

At the auction the minimum bid is the balance of the loan plus any and all cost of the foreclosure. If this minimum bid is not met the lender takes the property back.

If this happens, all the paper work is completed the lender then out source the property to a real estate broker. The real estate broker market the property at market value. The loan balance does not matter.

There is a thing called deficiency judgment, I have only known it to be used once. That was used because the house had burned down.

The lender will not go after your other house.

Now you should contact the lender and attempt to work out something with them. There are several things you can work out and it matters not if you want to keep the house or give the property to the lender. Contact the Loss Mitigation department of your lender.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

they cant touch the other property so RELAX the transactions are separate and canbnot be combned. Look at other options before foreclosure panic sets in and this is the easy answer with big downfalls. consider selling it below loan value known as a short sale or take out a line of credit to pay for the mortgage for the next year or two untill you catch up. or sell the first home and use the money to pay for the second in your situation foreclosure is really a last option before you do a million other things. good luck and if you need more advice or details just e mail me and I can help I have alot of experience in this since I have many properties and most of them pay themselves through lines of credit that charge a lower rate than the increase in property values

Answer 4

They cannot intermix the collateral from one mortgage loan with another. However, that's not where it ends. If the lender for your primary residence discovers that you have substantial equity in the now-rental property, they can bring suit for the deficiency amount on your primary residence after foreclosure, obtain a judgment, and THEN use that judgment to procure a lien against your now rental.

Answer 5

well big boss, you needn't worry about commingling homes indebtedness unless you did a 'wraparound' deed of trust to obtain the newer home.
If one is divorced from the other, you have no reason to worry.
However if you get a abstract judgment against you for any reason, be it auto, home or retail credit cards, that can become an abstract judgment and therefore fall victim to your real properties.