Im going to try and make a long story short as possible.
We lived in California for 8 years. We bought 2 houses. We had to move for my husbands job, so both are rentals. One renter hasn't paid the rent in 3 months(house #1) the other is having a hard time making the rent. Mind you they aren't covering the mortgage even when they do pay.. one of the houses is putting us in the hole 500 a month and that is when they pay (house #2)
House #1 is on the market and we are trying to do a short sale. One month.. no offers. We did refinance on this house. House #2 the renters can't make the payments and even when they do we are out the 500 a month. We can't keep going on like this. Our savings are gone and we are near financial ruin at this point. I say we have no other choice to foreclose on at least one of the houses... preferably house #2.
We are now living in Ohio in a beautiful area in a house we can actually afford, in a good school district and my husband is finally thinking about retiring here after 25 years in the military... FINALLY THE QUESTION...
Will we lose our house in Ohio? That is the one thing we don't want to happen. Any advice would be greatly appreciated. We are literally at the end of our financial rope.
Thank you in advance.
Stacey :(

First you need to use a management company and evict if they are 15 days late and stop being a nice person and being a landlord.

And you need to try and sell both, also you don't foreclose, the lender will after you have not paid for a number of months, they are likely to let it go out 5 or 6 months even longer at times. They use this time to first give you a chance to find a way to pay, but also to build up late charges and other fees so by the time they foreclose it will be a much higher price you owe.

And yes they may decide to come after the balance. You will be much easier to sell it, even try a short sale.

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Originally Posted by Katzpurr

Im going to try and make a long story short as possible.
We lived in California for 8 years. We bought 2 houses. We had to move for my husbands job, so both are rentals. One renter hasnt paid the rent in 3 months(house #1) the other is having a hard time making the rent. Mind you they arent covering the mortgage even when they do pay..one of the houses is putting us in the hole 500 a month and that is when they pay (house #2)
House #1 is on the market and we are trying to do a short sale. One month.. no offers. We did refinance on this house. House #2 the renters can't make the payments and even when they do we are out the 500 a month. We can't keep going on like this. Our savings are gone and we are near financial ruin at this point. I say we have no other choice to foreclose on at least one of the houses...preferably house #2.
We are now living in Ohio in a beautiful area in a house we can actually afford, in a good school district and my husband is finally thinking about retiring here after 25 years in the military...FINALLY THE QUESTION...
Will we lose our house in Ohio? That is the one thing we dont want to happen. Any advice would be greatly appreciated. We are literally at the end of our financial rope.
Thank you in advance.
Stacey :(

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They don't have the rights to foreclose on your primary residence, they only have the rights to foreclose on the properties that were used in securing the loan. So if you were let the other two properties go into foreclosure. You would lose the two homes, ruin your credit for a while. But not lose your primary house. If you are not interested in keeping the other homes and trying to rent them again. I would contact a good agent, explain what is going on and sell them in a short sale if you can. I would also contact the mortgage companies and explain to them what you are doing as well. They probably won't like it, but they are just as stuck as well.