if for some reason my income is reduced and I continue paying my single family home mortgage but do not pay the condo mortgage that I am renting out. Can they mess with my single family home(that has equity)?
Steve D
Depends on whether you live in a recourse state or not. If you live in a recourse state, any debt left over after the condo is foreclosed upon and sold is fair game - the lender can come after other assets through the court system. This usually involves either getting a judgment and then a garnishment of wages or getting a judgment and attaching other assets - such as a house with equity. It is possible at some point if the condo lender attaches the house and you continue to not make payments to them, they can ask the judge to initiate proceedings to take possession of the house with equity for the purpose of selling it to pay your debt.
If you live in a non-recourse state, you are pretty much insulated. Note however, that many non-recourse states do not extend the protections against recourse to second/vacation/investment houses.
realtor.sailor
It's possible. Your condo lender probably has the option to seek a deficiency balance judgment. If that's the case and they get a judgment it would attach to anything you own. But they couldn't foreclose unless it's the same lender on both.
Badge203
Good chance you will be evicted
?
you might be forced to sell it