If I foreclose on a rental property, can a mortgage company come after my other home?

February 6th, 2010 | by admin |

if I currently own a home, and rent it out, then purchase another home to live in, and after a year the renters move out, and I can’t make the payments, and am forced to foreclose on my rental, can the mortgage company come after my new home? I live in MD.

Yes, if you owe money, the people you owe it to can go after any of your assets. However, if you declare bankruptcy, the home you live in is usually protected (to some extent). You should really talk to a lawyer.

  1. 3 Responses to “If I foreclose on a rental property, can a mortgage company come after my other home?”

  2. By Candy on Feb 6, 2010 | Reply

    Yes, if you owe money, the people you owe it to can go after any of your assets. However, if you declare bankruptcy, the home you live in is usually protected (to some extent). You should really talk to a lawyer.
    References :

  3. By mortgage underwriter on Feb 6, 2010 | Reply

    Not unless you did a cross collaterization. You have one mortgage on both properties, very rare. If the bank sells it for less than what you owe on it, it’s called a short sale. They may send you a 1099 for the difference. Then you get to pay taxes on it.
    References :

  4. By poletop1 on Feb 6, 2010 | Reply

    What your saying is, your not forclosing, your defaulting on the loan of the rental property. Forclosing is what the bank/lender will do to you once you default on the payments. This will ruin your credit for many years. I don’t know if the lender can come after your new home, that all depends on how you financed things and what was put up as colatteral.You’d be better off to present this matter to the lender and work out a mutual agreement and sell the rental property and settle the loan. Thats what a smart person would do. Sounds like your way over extended, and not too smart.
    References :

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