If we foreclose on a second home can the mortgage company take the equity from our primary home? Each home does not have the same mortgage company. The second home needs a lot of major replacements and repairs which we can't afford and would not be able to sell it in this condition. Any advice will be appreciated. Thank you.
By Rose Mary from Jackson, MI
This is one you really should ask a Real Estate Lawyer about. Most will give a free consultation.
Since you say it's two different mortgage companies I doubt they can take the equity from the other but they might be able to put a lien on it :-( Please call two or three RE Lawyers and get their advice.
You need a lawyer. Also, a friend of mine could not afford to keep her house after her divorce. She could not sell it for what was owed so instead of going through foreclosure a lawyer arranged something where she essentially gave the house back to the bank and it was not quite as bad on her credit as a foreclosure. Maybe you could do something like this.
No...simple as that. You should, however, contact the creditor about a possible modification of the loan. If the property is "underwater", you could receive a reduction on the principle balance; the creditor would rather have you pay off the loan than foreclose on the property that isn't worth the amount loaned against it.
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