Can A Foreclosure on One Home Effect other Home Mortgage?

ReefDreamer · #1 08-12-2007, 08:42 PM

What is the name of your state? Maryland

Hey All,

I own a home in Maryland (Home #1) that is 100% financed, we bought it with the intention of trying to refinance at a later date. Well, 2 years later I was forced to move because of work.

I now have a new home in MN (Home #2), where we currently live. We are having a horrible time selling Home #1, and for the first time are looking at more extreme options. We just can't continue to pay both mortgages.

So my question is: If we had to foreclose on Home #1, would it effect our mortgage with Home #2 in any way?

LindaP777 · #2 08-12-2007, 10:45 PM

Quote:

Originally Posted by ReefDreamer

If we had to foreclose on Home #1, would it effect our mortgage with Home #2 in any way?

If the bank foreclosed on home #1 and they were granted a "deficiency judgement", the bank could conceivably put a lien on house #2 to try to satisfied the judgement, assuming there is any equity in home #2.