QUESTION
Can a lien be put on a home if it was not used for purchase of another house?
Asked on Aug 06th, 2013 on Foreclosures - California
More details to this question:
We have a home that we could not sell before we left. It was rented out but now the tenants are moving out and we cannot afford to keep making the payments. We have purchased a home in another state and need to know if this home will be affected if the old home goes into foreclosure.
2 ANSWERS
The new home itself will not be affected. However, the foreclosure will adversely affect your credit score, which may affect your relationship with the lender on the new home. If the old home is under water and there is no hope of saving it, you should contact the lender and negotiate a "cash for keys" deal. Lenders are usually willing to pay a few thousand dollars in exchange for the borrower signing over the property because it saves the time and cost of foreclosure.
Answered on Aug 14th, 2013 at 10:07 PM
General Law Attorney serving Cherry Hill, NJ
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Mark S. Cherry, Attorney at Law, PC
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Unlikely, but possible. In New Jersey the only way that could happen is if the New Jersey house went into foreclosure, went to sheriff sale and then the lender filed a deficiency action, obtains a judgment, then transfers the judgment to your new State, and, If your new State allows out of State judgments to be recorded against real property.
Answered on Aug 14th, 2013 at 10:07 PM