Upcoming Foreclosures

If one of my properties goes into foreclosure, will the lender who forecloses, go after my other 2 properties?

I have 3 properties, 2 rentals and one primary residence. One of my rentals is about to go into foreclosure. I have tried to sell it as I can't get the rent for the mortgage anymore, and it's been on the market for 6 months even after several price reductions. Now I can't afford to pay for that empty house and have tried all i can to sell. If i foreclose on this property, will the lender take my other properties away too?

Public Comments

1. Only if they were listed as collateral. Once they forclose, the bank will sell the house and you will be responsible for any amount they were not able to get from the sale of the house. If that is a substancial amount, they can take you to court and possibly get a judgement against one of your other properties depending on how much equity you have in them. That means there will be a lien against the house and you will have to pay that before the property is sold. That is my unprofessional understanding of the law in New York State. I suspect it is similar in your state.
2. Where are you located? And, they can't take them away, the other properties are separate, as long as you pay all the costs involved, however, they could come after you if they found out you have other properties, they are only trying to collect back what they might've lost by suing you, but it's not likely to happen, if it was not a short sale, should you owe money they will place liens on the properties, you'd have to transfer title to someone, such as a child or relative, or establish a trust fund, this way, it is not possible, but you must act fast.
3. A lot depends on which state laws govern foreclosures in your area. Basically there are 2 kinds of foreclosure: judicial foreclosure and non-judicial foreclosure. A judicial foreclosure allows the lender to take back the property through court action and to obtain a deficiency judgment which then becomes a lien against any and all other real property to which the owner is in title in county in which the judgment was filed. The lender may also transcribe e the judgment into other counties. This judgment lien is like any other judgment, the lender may use it to recover their loss through all legal means including garnishment, attachment of assets, etc. This judgment is effective for 10 years and may be renewable for another 10. It will also negatively impact your credit score. A non-judicial foreclosure does not provide the lender the ability to obtain a deficiency judgment, they may only recover the property securing their loan.
4. It seems that you owe more than your house is worth. There are options for you. Check out our national web site www.nafpp.com You can call our toll free informative hotline 888-870-9191