If I have been pre-approved for a new mortgage on a second house, what if I'm unable to maintain payments on my 1st house?
Question Details: I am looking to rent or rent-to-own my 1st house (current) and move into new one. I am concerned that the market would not allow me to rent or rent-to own at a profitable lease. What recourse would the 1st mortgage lender have it the 1st home went to foreclosure or short sale?
Hong Shen / Roberts Law Group
Answered 1 year ago
This attorney is licensed in California
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If the house goes to foreclosure it will be auctioned off to pay for the mortgage. In a short sale situation the bank may be able to give you a break and let you sell the house at the certain price to repay the mortgage debt.
