Posted on: 03rd Sep, 2010 01:51 pm
Hi;
I just learned that my investment property will go on foreclosure this month. I had a second lien on that property and stop making payments on both a couple of years ago after i lost my job.
What happens if the property is foreclosed for an amoun lower than the principal owed on the first mortgage?
I just learned that my investment property will go on foreclosure this month. I had a second lien on that property and stop making payments on both a couple of years ago after i lost my job.
What happens if the property is foreclosed for an amoun lower than the principal owed on the first mortgage?
Hi fpaez!
Welcome to forums!
After the foreclosure sale, if there remains a deficient balance, then the lender can come after you to recover it. However, if your loan is a non-recourse one, then the lender will only be able to recover the collateral. He won't be able to sue you for the balance amount. You should check your loan docs in order to know whether or not your loan is a non-recourse one.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
After the foreclosure sale, if there remains a deficient balance, then the lender can come after you to recover it. However, if your loan is a non-recourse one, then the lender will only be able to recover the collateral. He won't be able to sue you for the balance amount. You should check your loan docs in order to know whether or not your loan is a non-recourse one.
Feel free to ask if you've further queries.
Sussane