Will we have to move?

What is the name of your state? Nebraska

This question is for a friend. They own 3 houses. They sold their 4th on a land contract so it is still in there name also. The bank doesn't know about the land contract. They have 2 rentals and the house they live in. They didn't make the mortage payment on one of the rentals, because it is empty and they don't have the money. It has been empty for a few months and they have sold things to make the mortage every other month. Don't have anything else to sell. It was due in January. Could they loose all their houses or just that one? The house is on the market. They had a pipe break in the basement last week and now have water damage and might have to replace the carpet and stuff. They do have insurance, so it is covering it. It just probably just won't sell as great until it is fixed. We live in there other rental that is a duplex, so I am asking for them and for us. Stefanie

[JETX]

Pretty broad question, but I will give the short answer.

This is what would LIKELY happen. Since they are only in arrears on one property, the mortgage company could foreclose on that one property only. If, after foreclosure, the mortgage company suffers a loss, they COULD then sue them to recover their losses (unlikely, but possible). Then, if they got a judgment, they COULD seize other non-exempt assets of the debtor in order to pay the judgment.

In any case, you are months (at soonest) if any impact on you.

[HomeGuru]

Provided that there is no blanket mortgage or cross collateralization of the properties.