Article Score0

I have two homes with the same mortgage co. One I can’t afford and the other I can. The one I can afford has a little equity. Can they force me to sell it if I go into foreclosure?

7 Thoughts on What can the mortgage company do when I have two properties and can only afford one?
  1. Reply
    March 17, 2012 at 10:06 pm

    If you go into foreclosure, the mortage company will not force you to sell, they’ll take the property and sell it themselves. If you aren’t in foreclosure right now, take the initiative to sell the property and ask for at least what you owe on the loan. Hopefully, it will sell and you will be able to discharge the loan before the mortage company forecloses.

  2. Reply
    March 17, 2012 at 11:03 pm

    well if your behind on both of them they will forclose on both if your behind on one they will take that one. Tip: dont bite off more than you can chew mkay?

  3. Reply
    March 17, 2012 at 11:55 pm

    Yes, if you don’t pay them mortgage they will seize the house.

  4. Reply
    Serge M
    March 18, 2012 at 12:17 am

    No. There is a separate mortgage on each property. You should try to sell one of them, but if you can’t sell it and the company forecloses on it, they become the owners of the property. They cannot force you to sell your other property. Your situation may be more complicated than you state. You should probably consult a lawyer.

  5. Reply
    March 18, 2012 at 1:14 am

    Unless the mortgage you sign pledges BOTH properties as security for both loans, they can only foreclose on the property pledged to secure the loan you default on. Without reading the actual MORTGAGE, which is a separate document than the loan, I can’t be certain, but I doubt both homes are pledged for both loans. The CAN sue you for the difference between the proceeds from selling the house the foreclose on and what you owe. After winning that case (they WILL win), they can ask the court to place a judgment lien on EVERYTHING you own. If you have no equity in the house you keep current, there is not reason for them to force a sale.

    • Reply
      January 18, 2016 at 5:22 am

      Thanks Steven – what about if there is equity in the first property (principle place of residence) which is used as security for the investment property, which I now cannot afford (due to a downturn in the mining industry)? Even if I sell the investment property, there will be a substantial short fall of 50% of the property value. Any suggestions? Thanks, Jenny

  6. Reply
    March 10, 2016 at 8:49 pm

    I got two separate mortgage company. And now I don’t have tenant thinking about letting go the other house to avoid struggle and sickness what to do.

    Leave a reply

    Register New Account
    Reset Password