Posted on: 26th Mar, 2009 11:14 am
I am under contract for a home to close in the near future. My current home has not yet sold. What options do I have going to closing on the home under contract and still not have sold the current home. I cannot afford double mortgage.
Can previous home be foreclosed and keep 2nd home?
Can previous home be foreclosed and keep 2nd home?
Once you purchase your new home and you still haven't sold your other house then, those are two different notes. Unless they are with the same lender and the cross collateralize the loans. If it is the same lender and the loans were cross collaterized then when you default on one loan it will automatically consider you as defaulted on your second loan.
If you have new lender for the new home, then one home can foreclose and you can keep the 2nd mortgage. It is has nothing to do with the other. You will have two mortgages. You may need to consider renting the property out until you can get a buyer. Or even owner financing, just make sure you don't cross out any options and let foreclosure be the LAST result if you can avoid it.
If you have new lender for the new home, then one home can foreclose and you can keep the 2nd mortgage. It is has nothing to do with the other. You will have two mortgages. You may need to consider renting the property out until you can get a buyer. Or even owner financing, just make sure you don't cross out any options and let foreclosure be the LAST result if you can avoid it.
Hi
I agree with tawanastegall. If two loans are completely different, foreclosure on one home will not affect the loan on the other home. But foeclosure should be your last option as it will damage your credit big time. Instead, renting the house or going for a Owner Financing would be good options for you.
I agree with tawanastegall. If two loans are completely different, foreclosure on one home will not affect the loan on the other home. But foeclosure should be your last option as it will damage your credit big time. Instead, renting the house or going for a Owner Financing would be good options for you.