We bought a house about four years ago, and put our old one up for sale. When the old one didn't sell, we rented it out and tried to sell again between tenants. Four years later, the rental house has depreciated so much that it is almost worthless. We have had it on the market almost a year, and nothing. Homes in that area are selling for under 10k. We owe 29k, because once upon a time it was worth much more. It is going to foreclosure soon, because we could not keep up with the rising taxes and repair expenses (expenses much greater than rent). I have heard that the deficiency balance can be attached to my home as a lien. My question is, if that happens, can the bank force me to sell/or forclose my current home?

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Originally Posted by jbooks

We bought a house about four years ago, and put our old one up for sale. When the old one didn't sell, we rented it out and tried to sell again between tenants. Four years later, the rental house has depreciated so much that it is almost worthless. We have had it on the market almost a year, and nothing. Homes in that area are selling for under 10k. We owe 29k, because once upon a time it was worth much more. It is going to foreclosure soon, because we could not keep up with the rising taxes and repair expenses (expenses much greater than rent). I have heard that the deficiency balance can be attached to my home as a lien. My question is, if that happens, can the bank force me to sell/or forclose my current home?

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There is more to this than a simple answer, but generally the answer is no. You need to contact a real estate attorney in the state that you live in. The first consultation is usually free. Do this now but the foreclosure goes any farther.

Such a lien cannot be used to force the sale of a primary residence. Depending on your area, it may even be exempt.

But they can go after you in other ways for the unpaid balance of what you owe. Salary garnishment, bank account attachment, etc.

Hello j:

I have a sneakin hunch we're talking about a mobile home here. If so, just like a car, IT is its own security.

If, however, we're talking about a regular house, they'll sue you, win, and put a lien on your current home if you don't pay.

No, they cannot force you to sell. But you're going to owe the money. Talk to your bank about a short sale.

excon

Thank you all for your help. Believe it or not, this is not a mobile home. It is an older home in an urban area and a market currently saturated with others just like it. I understand I will owe the deficiency one way or another. I have contacted an attorney and am waiting anxiously for the appointment. Thanks again!