If i let one house foreclose can the bank come after my other house that i own?

Question

I have a house that I have been renting out and in the mean time I just bought another one. Due to the economy and the market I am unable to sell my rental house for near what i owe and the rentors has just moved out and I am unable to find another rentor. I can not afford both house payments. Does anyone know if I let my one house foreclose, can they come after the house I just bought or the equity in it? Thanks

Answer 1

an investment property is completely different then personal residence when it comes to your potential liability

Answer 2

Jordan is wrong, unless you are in a non-judicial foreclosure state.  If you are in a state that allows judicial foreclosures (the vast majority do), the lender can get a judgment and place a lien on ANY real property you own, including your personal residence.

Answer 3

Yes, they can come after your equity in your current property.  You DO owe the money and lenders tend to go after such monies if they find out (and they will) that you have equity in other properties.

Answer 4

I am sorry to say that they can.

Go to a rental agency asap and get yourself another tenant.

Good luck.

Answer 5

They sell the house and get the money from that.  I really don't know but my aunt is buying a foreclose and i don't think they are going after the people that owned the house.

Answer 6

With all the foreclosures going on at this time, the banks won't have the time and money to go after your other house.  In order to go after your other house, they would have to hire lawyers to sue you and that cost more money.  Check out the blogs at www.foreclosurefish.com to get more info about foreclosures.