Posted on: 23rd Oct, 2008 10:35 pm
What are the possible repercussions of a foreclosure on other owned properties?...My husband and I live in Grass Valley, Ca. We own an investment property in KY which has renters and provides monthly income which we have been unsuccessful in selling. We also have a home in TN with a mortgage that is 50% of the value of the home. We are unable to pay for both the CA home and the TN home any longer. We are considering walking away from the CA home and moving back into our TN home. What are the possible repercussions of walking away from the CA on our other properties? Can the lender in CA come after the others?
Hi wlindseyclan!
If you simply walk away from the house in California and do not inform the lender, your lender will foreclose the property and can also initiate legal actions against you. The lender may even place liens on your other properties.
Its better to inform the lender and go for some loan repayment plan. You can even go in for a short sale or a deed-in-lieu foreclosure.
Thanks.
If you simply walk away from the house in California and do not inform the lender, your lender will foreclose the property and can also initiate legal actions against you. The lender may even place liens on your other properties.
Its better to inform the lender and go for some loan repayment plan. You can even go in for a short sale or a deed-in-lieu foreclosure.
Thanks.
Hi wlindseyclan!
I would never suggest anyone to walk away from their properties. This will not only lead to a foreclosure but will also bring forth penalty against you. If the lender is unable to recover his debts through foreclosure, he can place liens on other properties. The lender may also garnish your wages.
Its always better to go in for a alternate repayment plan with the lender.
Thanks.
I would never suggest anyone to walk away from their properties. This will not only lead to a foreclosure but will also bring forth penalty against you. If the lender is unable to recover his debts through foreclosure, he can place liens on other properties. The lender may also garnish your wages.
Its always better to go in for a alternate repayment plan with the lender.
Thanks.
In the case of retirement income, would a lender also garnish this income too? We have two properties both financed on one property via 2nd loan.
The one property has not sold and have only a couple years before we retire. Concerned it won't sell and our income will drop. We have tried to work with our lender but because of the second loan they won't budge. We have even tried to sell house for less than amount owed and carry another loan against the differance just to get out of the situation. Any suggestions?
The one property has not sold and have only a couple years before we retire. Concerned it won't sell and our income will drop. We have tried to work with our lender but because of the second loan they won't budge. We have even tried to sell house for less than amount owed and carry another loan against the differance just to get out of the situation. Any suggestions?
Hi sheba,
Lenders cannot garnish your retirement income or your retirement accounts. These are protected from garnishment. Thus, your lender would not be able to come after your retirement income. However, the lender may come after your other properties, savings accounts, etc.
Lenders cannot garnish your retirement income or your retirement accounts. These are protected from garnishment. Thus, your lender would not be able to come after your retirement income. However, the lender may come after your other properties, savings accounts, etc.
I own a home in IL that has been on the market for 5 months. I bought a new home in AZ (no mortgage) and will be retiring in 4 years. What can happen if I can't continuing paying on my home in IL if it doesn't sell? Can they lien on my new home or my retirement savings? I haven't found a new job in AZ yet, and am drawing from my savings to manage double expenses in two locations? What options do I have if funds run low?
Hi crucema!
Welcome to forums!
If you stop the loan payments for the your home in IL, then the lender will foreclose it. You will be liable for the deficient balance resulting from the sale of the property. If you are unable to pay it off, then the lender can file a lawsuit in Arizona and try to get a judgment against you so that he can place a lien on your property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you stop the loan payments for the your home in IL, then the lender will foreclose it. You will be liable for the deficient balance resulting from the sale of the property. If you are unable to pay it off, then the lender can file a lawsuit in Arizona and try to get a judgment against you so that he can place a lien on your property.
Feel free to ask if you've further queries.
Sussane
California is a non-deficiency state. Read about that before people worry you. Foreclosure isn't that bad. Especially here.
we just recently foreclosed our home and my dad would like to buy a home in CA pay for it himself but add me on the title. I am worrired that this might be a bad idea and they could run after his property since we foreclosed on our home and since he put me on the title of his property the banks might think I have another property that they can take. what should I do?
Hi Sussane,
Thanks for your reply! That's great! My only worry is that will the bank run after my dad's property since my name will be put in the property deed and we have a foreclosure record?
Thanks for your reply! That's great! My only worry is that will the bank run after my dad's property since my name will be put in the property deed and we have a foreclosure record?
Hi Guest,
If your name is put on your father's property, then your creditors can come after the property in order to recover their dues.
If your name is put on your father's property, then your creditors can come after the property in order to recover their dues.