Foreclosure On Investment / Second Home

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If I foreclose on an Investment Home, can the Bank attach a Lien on my Primary Residence?

Comments(19)

  • whitebb1st September, 2007

    You mean if your investment home goes into foreclosure, will they put a lien on your primary? No, because the collateral for the investment home is the investment home, unless you did a blanket mortgage or pledged the primary residence as collateral. Your credit is going to be hit hard/
    Now the question that must be asked: WHY are you going into foreclosure?

  • fjjswj1st September, 2007

    Not sure if I will, just getting answers just in case the Investment House does not sell

  • finniganps1st September, 2007

    Look at your current loan papers on the investment property to determine if you have a recourse or non-recourse loan. That will determine what the bank can do if you are foreclosed on the investment property.

  • linlin2nd September, 2007

    In the state of Florida they could ask ask for a deficiency judgement (it is usually listed in the Summary Judgement). If they certify the judgement with the court it would automatically attach to any real property you own.
    However, here in Florida if your primary resident is listed as homesteaded they cannot force a sale of it so the judgement is basically deferred and even if you sold the primary resident there would be ways to avoid that judgement.

  • d_random17th September, 2007

    You could get a owner occupied loan, rent out the property you currently live in and move in the new place and renovate while you live there. The rates are better and it is easier to qualify for a owner occupied loan. Usually the loan requires that you only have to live there one year. Then repeat the process until you have collection of properties that produce the income you want.

  • 33803Chic17th September, 2007

    Thanks for the replies.

    Can anyone suggest a couple good books for beginners?

  • d_random17th September, 2007

    Rental Houses for the Successful Small Investor by Suzanne Thomas

    http://www.amazon.com/Rental-Houses-Successful-Small-Investor/dp/0966469119

  • LeaseOptionKing10th October, 2007

    You can easily dispute it. In about a month, it will drop off your file.
    [addsig]

  • d_random10th October, 2007

    check with www.creditboards.com forum too for more info.

  • cjmazur10th October, 2007

    totally dispute it. www.creditboards.com will confirm that and educatue on tricks to working with all 3 credit bureaus

    Or it may be as simple as a call to the university.

  • LeaseOptionKing11th October, 2007

    A call to the university will likely do it. You have the grounds for a very good lawsuit. If they are smart, they will clear this up pronto.
    [addsig]

  • smoothfingers11th October, 2007

    thanks for the suggestions

  • dnvrkid2nd November, 2007

    You can try calling people in your local REI club they should have a good source. Your newspaper can have some leads, or you can look for the WE buy home signs. Some of them are HML or know people that are.

    Good Luck.

  • d_random9th November, 2007

    I would also post this question at www.creditboards.com forum too. Good info there.

  • cjmazur10th November, 2007

    look into the special rules that apply when a loan servicer changes. The borrower has some special right.

    Also, the big guns is to dispute the late payment with the loan company/servicer, this kicks in the the FCBA. In CA there are State laws that apply that give some great benefits.

  • d_random19th October, 2007

    I think they take all three and get an average. Check www.creditboards.com forum for further information.

  • cjmazur19th October, 2007

    in prequalifying I was asked my "mid-score".

    I guess that was close enough for them.

  • fdi19th October, 2007

    Depends upon the creditor. The best thing you can do is compare the three reports and repair any negative reporting errors.

  • ypochris23rd October, 2007

    My experience has been that they use the middle of the three scores-

    Chris

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