my brother and his wife currently own a house which is upside down. because of the market, they decided to purchase another house and rent the other. it has been 3 months and they can rent the house. if they foreclose on the house, what will happen to the new home? can a lien be placed on the new house?
Anonymous
Favorite Answer
It depends on the state you live in. Each state has different laws regarding foreclosure. For example, in Arizona we have a law that protects a homeowner's primary residence even if they lose an investment to foreclosure. The best thing to do no matter where you live is to speak to a real estate attorney who understands the foreclosure process and rules in your state.
ramkot
If they can not pay loan on the second house, they loose both of them. The lender can come after any assets you have in second house for the default money.