Foreclosure and lien on my rental in Colorado?

Question

If I let the lender foreclose on my primary residence, can they attach a lien on the equity I have in a Rental? Both properties are in Colorado, different lenders. Thanks!

Answer 1

You're right to ask about the consequences of a pending foreclosure, but perhaps you be seeking other ways to forestall it like loan renegotiation. The lender doesn't want to loose money - so if you can make any sort of reasonable offer to them that would allow them to continue to carry the loan on their books and not have to write it off the better for the both of you. below are some links to articles in the LegalMatch Law Library that can give you advice as what to do next...you may need the services a a qualified loan broker and /or a good real estate attorney..

Answer 2

No.... the lien can only stay on the primary. They can file a judgment which can then attach to you. Why not go to the lender and ask for loan modification. I recently negotiated a client into a 3.95% fixed rate (but only for 3years). His rate was 11% and his credit was destroyed. He hadn't made a payment in over a year. I also had one lender give $25,000 in unpaid interest back to the borrower.