Foreclosure in 02571>Question Details

Kay, Home Seller in 02571

What are the ramifications of foreclosure of your 2nd home in Massachusetts?

Asked by Kay, 02571 Fri Jul 10, 2009

I own 2 homes in Ma. and 1 in Fl, my 2nd home in Ma is now mortgaged for more than I can sell it for, including 1st and 2nd mortgages. If I cannot sell it to cover mortgages and allow it to be forclosed does it put my other properties at risk, can debt be attached to other homes? Problem also includes my income falling due to injury,

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Hi Kay,

Your credit will be dramatically affected if you get to foreclosure. The foreclosure will stay on your credit report for at least 10 years. With a short sale, the credit report on your mortgage will show deliquent, but will eventually age as time passes. Once the home is sold on short sale, the credit report will indicate paid in full.
Eventually in a few years, if you pay all of your other bills on time, your credit will start repairing itself just by aging itself.
Your other optioin is to negotiate a loan modification. I've seen this done on owner occupied homes, second homes AND investment properties. Call or email me and I will be happy to guide you through.
0 votes Thank Flag Link Mon Jul 13, 2009
Hello Kay, I agree with the 1st post. You need to be proactive. You may need to look at doing a short sale on your MA property. Your other property would not be affected. Feel free to contact me for information about doing a short sale or if you would like legal advice.
0 votes Thank Flag Link Fri Jul 10, 2009
You need to be pro-active in this. You'll need to find out the current market values for each property, an idea of your income vs. your mortgage & associated bills and the current balances on any outstanding mortgages. You should probably consult a trusted attorney for the specific remedies available to you in your position. You'll probably also have to do as much belt-tightening as you can, perhaps you can rent out your other properties if allowed. There is one level of assistance for primary residence mortgage assisance/short sale workouts and quite another for investment/vacation properties. You'll need to find the most experienced advice specific to your situation. Ask friends, family, colleagues for a real estate attorney they've worked with recently at the very least they can refer you to someone who has extensive knowledge & experience.

Hope that helps,
0 votes Thank Flag Link Fri Jul 10, 2009
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