Can a lien be put on a home if it was not used for purchase of another house? 4 Answers as of August 14, 2013

We have a home that we could not sell before we left. It was rented out but now the tenants are moving out and we cannot afford to keep making the payments. We have purchased a home in another state and need to know if this home will be affected if the old home goes into foreclosure.

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Janke Legal Consulting | Bruce C. Janke
The new home itself will not be affected. However, the foreclosure will adversely affect your credit score, which may affect your relationship with the lender on the new home. If the old home is under water and there is no hope of saving it, you should contact the lender and negotiate a "cash for keys" deal. Lenders are usually willing to pay a few thousand dollars in exchange for the borrower signing over the property because it saves the time and cost of foreclosure.
Answer Applies to: California
Replied: 8/14/2013
Danville Law Group | Scott Jordan
The answer to your question will depend on which state the first home is located in. If it is California, the answer is no. If it is some state that allows the foreclosing bank to sue the owner for the balance of the loan, then yes it could.
Answer Applies to: California
Replied: 8/14/2013
Mark S Cherry, Attorney at Law, PC
Mark S Cherry, Attorney at Law, PC | Mark Cherry
Unlikely, but possible. In New Jersey the only way that could happen is if the New Jersey house went into foreclosure, went to sheriff sale and then the lender filed a deficiency action, obtains a judgment, then transfers the judgment to your new State, and, If your new State allows out of State judgments to be recorded against real property.
Answer Applies to: New Jersey
Replied: 8/14/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Generally no,, the property is usually the only collateral for the house but the lender has the option to go after you for a personal judgment 90 days after a foreclosure sale. You should try to short sale the property through a local realtor so you do not have to worry about liability
Answer Applies to: New York
Replied: 8/14/2013
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