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Hypothetical question.... What happens if...?
you buy a new house before selling your old one... it doesn't sell timely and you can't afford both mortages?... what happens if you default on the first house?
3 Answers
- ?Lv 51 decade agoFavorite Answer
If you got a bridge loan ( a loan that tied the two houses together ) then both will go into foreclosure. If both loans are separate then the first will go into foreclosure and a lien may be put on the second home.
Good luck!
- golferwhoworksLv 71 decade ago
you may not be buying the second home as the debt to income ratio may stop that. See if you can only afford 1 home then no underwriter in their right mind will allow you to get a second home until the first home is satisfied and they see the settlement statement. Now if you can afford both notes and let the first go to foreclosure then that lender will absolutely place a lien on your home as you let theirs go bad for a new home.
I am a mortgage banker in TN
- LILLLv 71 decade ago
You would not be able to qualify for a new house if you could not afford both mortgages.
If you could, the first lender can (in most states) place a large lien on your new home....and force a second foreclosure.
