Foreclosure
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Foreclosure
I currently own 2 homes. I use one as a rental property and the other one I reside in. If my tenants turn out to not work, I cannot afford to keep up the payments on the rental house. If I were to let that house go into foreclosure, would anything happen with the house that I reside in?
Asked on June 12, 2009 under Real Estate Law, Indiana
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
If you have enough equity in the rental property, that you could cover the mortgage balance, together with whatever suit and sale expenses accumulated, from the sale of the property, that would be the end of it.
But, if there was an unpaid balance left on the mortgage, after the sale, the lender could get a deficiency judgment against you, and there are some situations in which they could try to force a sale of your residence to pay that. You need to review all of the facts with an attorney in your area -- the details often matter quite a bit. One place to find a qualified lawyer is our website, http://attorneypages.com
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