Foreclosure in Arkansas>Question Details

Lburton, Home Buyer in Rogers, AR

Foreclosure on my second house.Can they take my first home??

Asked by Lburton, Rogers, AR Sun Mar 29, 2009

I have two homes in the same town.
The first home is paid for, the second home is going to be foreclosed.Could I lose my first home because of the foreclosure on the second home?

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4
What is the issue MR. Burton, You should be able to pay for that one with a primary mortgage on your 1st home unless there are circumstances that you are not telling us: i.e. bad credit rating, no job, etc. Blaison and Steven are correct, unless you have a second on your primary home or a wrap around mortgage that aslo includes your primary home, it cannot be touched. There are lending institutions that will try and will threaten. Is it as some folks I know who are tied up with one of those national bank or internet marketing mortgage companies who love to take things or charge a large amount for you to keep the 2nd home? Do business with one of your local banks to not wreck your credit, if it is still good, and then as the advice below, find you a good Realtor and move that thing, short sell, you don't have to make money to sell!!
0 votes Thank Flag Link Mon Jun 15, 2009
Why don't you sell the one that is free and clear and apply what you make off of it to the loan on the second home? You help the economy by selling one home and you don't mess over the bank or mortgage company or us tax payers on the second home that is going to cost all of us for your inability to manage your personal affairs!!! Maybe you should not own any homes.
0 votes Thank Flag Link Mon Mar 30, 2009
The answer would be No, they cannot get your first house if you foreclose the other house. Rather than foreclose, why don't you try to do short sale, contact an experienced short sale realtor in your area to sell your house so that you can avoid foreclose. When you hire a real estate agent, ask whether he is successfully closed the short sale and have any certification on short sale. You want a good agent on your side to sell the house. Consult with your CPA or tax attorney for any tax ramifications.

Let me know if you need any good agent referrals, who can assist you to sell your house and negotiate with your lender for successfull short sale.


Blaison Samuel
Certified Short Sale Specialist
0 votes Thank Flag Link Sun Mar 29, 2009
No. Not unless you have a wrap around mortgage involving your primary residence but even then it would require a foreclosure and in todays environment, there are far too many plans available for anyone to be losing their primary residence.
While your secondary home is not eligible for most of the workout plans available, if you are not able to pay for it, why not do a workout with your lender so that they don't have to go through the costs of foreclosure?
There are a number of possibilities available to work something out and in most cases that can be done without you being held responsible for any deficiencies that may exist after the home is sold (difference between what is owed - including penalties, interest, legal fees, carrying costs, etc. and what the lender "net's" from the sale) .
With all the programs available today, including but not limited to President Obama's Bailout Billions, virtually no one should lose their home to foreclosure.
Be careful of those that prey on those who are in default - get help from a reputable professional who understands todays mortgage crisis and real estate arena - preferrably a broker who knows the business of pre-foreclosure, foreclosure, REO asset management and liquidation. Each state is different so make sure that they are either in your state or have experience working in your state.
Unless you have received notice otherwise, your personal residence is safe.
Sleep well but do think about a resolution outside of foreclosure on your second home.
Trust me - your lender does not want either of your homes.
You may be surprised with your options.
Good luck!
0 votes Thank Flag Link Sun Mar 29, 2009
We have been trying for two to three years to get help with a loan or another reduction on home mortage, Husband lost job and hasn't had a full time job in 6 years. My income alone can not make even a third of the original mortagel
Loan went from Amtrust to Saxon t0
RCS which is a home payment collection company. they lowered the payment less than one hundred dollars. we can't afford it and are on the brink of house being taken. even tried making homes affordable from the presidents deal. Nothing. RCS really wants this house .
Flag Wed Oct 10, 2012
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