If you have two real-estate property's and one goes back to bank, can they take your other house?
I want to know if I have two houses and one it locked in to a 30 yr fixed rate (owner occupied) , and the other one is soon to adjust(rental) , If I cant sell this home and it forecloses , Can they take my other home ? Or do they just put a lein aginst the home I live in? , would a home stead protect you at all ? Or deeding it too some one elese?
- PatrickLv 51 decade agoFavorite Answer
Serge M has it correct. One thing I will say (and this is speculation) is that banks are taking a beating now with people letting their homes and investment properties go into foreclosure. This is going to change the way they do business and how they come after people for money. I think that for investment properties and second homes that go into foreclosure they are going to start putting liens on first properties. They'll do this because it does not take much more to set the lien up (while in the foreclosure process) and it will ensure that they have a debt that will be paid (after all, you are going to sell your house sometime, even if it is when you die).
In the past lenders have many times "forgiven" the debt owed to them. they did this because they get a tax break when it comes to writing off the debt. There comes a time when banks will hit a brick wall where they will hit the cieling on what they can get back from Uncle Sam my claiming the write offs. Once this happens it is no longer in their best interest to forgive the debt. This turning point is when they will start filing liens, etc.
Lastly, don't transfer the deed to someone else. It won't hold up in court. All the bank will say is that you are trying to hide your assets (which is what you are trying to do) and the judge will rule the transfer invalid and return he title to you then place the lien on it. If the judge is really a stickler he could charge you with fraud for the transfer.
If you are having financial difficulty, try for a short sale or a deed-in-lieu. For a short sale an investor would purchase the rental property at the right price. For a deed-in-lieu though you'll have to make sure your tenants are out of the property first though because banks don't want to be landlords.
- Anonymous1 decade ago
No, they cannot take your other home. If the foreclosed property sells for less than you owe on it, you will remain obligated to pay the difference, and the creditor can sue if you don't pay. The suit can result in a judgment against you, and the creditor can come after your assets, but your home has a first mortgage on it and the creditor can only get a claim against it that is subordinate to the mortgage. That means they may be able to put a lien against your home, but this is unlikely because they would more likely go after other assets such as your bank account, stock investments, or garnishment of your wages. The lien could be satisfied only when you sell your home, which could be years from now.
- ErikaLv 44 years ago
The subsequent 2 to 5 years, or extra, relying at the curiosity premiums, must be a well time to spend money on truly property. Real property is long run while shares are shorter time period--less complicated to liquidate speedy.