If you own two homes and one is foreclosed on, and you owe more than it's worth, can they take the other too?

Question

If you own two homes and one is foreclosed on, and you owe more than it's worth, can they take the other too?

Answer 1

NO.

If you go more than 90 days late on your payments for a piece of property, they can begin foreclosure proceedings.  Your note is your contract with the mortgage company.  There is a lot of verbage in it explaining how they will proceed with foreclosing, if you go into default.  It's worth reading if you're in trouble.  You also might call the bank on the one your late with and just give it back to them.  This may look better on your credit and they may give you some special considerations since they don't have to auction it, and they don't have to evict you or any of the other hassles that come with foreclosing .

If you are on time with the payments for the 2nd property, you should not have a problem holding onto it.

Answer 2

consider, on the one where you are behind;

selling part of the property; 1/2 of it

or other.  Sometimes, a person's down

payment is all a "behind in one's mortgage"

needs to get back on track!