Can a bank seize my primary residence if I default on the loan to my rental property?

I recently qualified for another mortgage on a home that will become my primary residence. My current home (current primary residence) will become a rental until/if ever I can sell it. It is upside down by about 40%. If I default on my 1st note, can the bank come after my primary residence if I’m in an equity position?

Asked on May 27, 2012 under Real Estate Law, Maryland


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you default on the home that is upside down and the bank forecloses on the property and obtains a deficiency judgement (the difference between the mortgage amount and the sale price) then they can file a line against the other property.  Good luck.

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