If I buy a 2nd house in another state and let my house in IN foreclose, can the bank come after the new house I just bought?

UPDATED: Jun 10, 2009

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If I buy a 2nd house in another state and let my house in IN foreclose, can the bank come after the new house I just bought?

I own a house in IN that I can’t seem to sell or rent and I had to move to another state for work. I want to get rid of that house in IN and buy another in the state I’m living in now but I don’t know what the bank will do. I’m not upside down on the mortgage yet, I just don’t want the house anymore. Is a deed in lieu the way to go? Will that destroy my credit? If I buy a new house in a new state can the bank come after that house for any reason. What are my options? Please help!

Asked on June 10, 2009 under Real Estate Law, Indiana


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

This is a complicated issue for the space allotted here.  I have provided you a link that will more fully explain your options and possible consequences: 


Hope this helps.  Best of luck.

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