Posted on: 28th Mar, 2009 03:12 pm
2005 we bought a 2nd home for when we retire, however my husband has had to take a medical retirement at 40% of his wage until 62 (6 more yrs). The value of the condo dropped 60% (Phoenix, AZ) and now our down payment is a loss instead of equity. We can no longer afford to make these payments and there is a $60K difference of what it's worth and what we owe. What are our options? Can they go after my primary home that we had intended on selling to down-size and supplement our income until he reached 62?
Hi ccarlsonak,
If you stop paying the mortgage dues for your second home, the lender would have the right to foreclose the property. Once he forecloses the property, he'll have the right to sue you for the deficient amount. If you can't pay off the deficient amount, then, the lender can place lien on your primary property.
I would suggest you to inform your lender about your hardship and check out if he can offer you any options. You can try to sell off the property through a deed in lieu. However, this would affect your credit score.
If you stop paying the mortgage dues for your second home, the lender would have the right to foreclose the property. Once he forecloses the property, he'll have the right to sue you for the deficient amount. If you can't pay off the deficient amount, then, the lender can place lien on your primary property.
I would suggest you to inform your lender about your hardship and check out if he can offer you any options. You can try to sell off the property through a deed in lieu. However, this would affect your credit score.