Posted on: 05th Jan, 2009 02:35 pm
I bought a property in 2005 in my name only not wife's due to credit. It is a investment property that costs 255000. I took 55000 out of my primary residense (equity loan) for down payment and got an ARM type loan interest only. the payment just went up 300 plus dollars and will continue every 6 month there after. I owe 197000. and its worth only 120000. and I can no longer keep up the payments. Can the lender go after my primary residense with a lien and savings,etc. I am going to retire in 9 years and am frightened of what can happen to my future. is it going to hit me tax wise too?
Please reply. Both my primary and this investment home is in Chino California.
Please reply. Both my primary and this investment home is in Chino California.
Hi Patricktafolla,
If you walkaway from the property, then the lender will have the right to foreclose it. Once the lender forecloses it, he will sell it in the market and try to recover the debts. If the lender goes for a non-judicial foreclosure, then he may not come after you for the deficient amount or may not place liens. In case of a judicial foreclosure, the lender may seek the deficient amount from you.
As you are facing problem with paying the mortgage. You should inform the lender about your hardship and check if you can get the option of forbearance.
Thanks.
If you walkaway from the property, then the lender will have the right to foreclose it. Once the lender forecloses it, he will sell it in the market and try to recover the debts. If the lender goes for a non-judicial foreclosure, then he may not come after you for the deficient amount or may not place liens. In case of a judicial foreclosure, the lender may seek the deficient amount from you.
As you are facing problem with paying the mortgage. You should inform the lender about your hardship and check if you can get the option of forbearance.
Thanks.