[dilek]

Hi my name is Dilek,
I was wondering if anyone knows or experienced about foreclosures. We cannot keep up paying our mortgage payments in our second property that was our primary residence until we bought a house thinking that we will make money by keeping the condo as rental, but we cannot rent it higher than what it is now, and it is not enough to make our mortgage payments, we spend $1000 extra every month. Now we decided to let it go, basically foreclosure, maybe we might be able to do short sale, we are in the process of putting in the market, but we really cannot make any more payments, so we will see if we get any offers to submit to the bank.
If we get to the foreclosre, does the lender go after our primary residence? Rental property loan is under my name, but primary is under my husband, does foreclosure show up only in my credit? Are there any companies outthere help with credit fixes for these type of issues?
Thanks bunch

[CliffARobinson]

The answers to your questions depend on the state you live in, as states have different laws regarding this topic. Generally speaking, it is possible for a bank to put a lien on your first home. Any amount left after the second home is sold could be looked at as an unsecured debt, and the bank could go after you to pay off that debt.

A short sale is a possibility, as is trying to release your obligation to pay the remainder of your mortgage by using Bankruptcy to discharge the remainder after sale.

As far as credit reports, all of this negative reporting will stay on your credit report for up to ten years. That includes foreclosure, late payments, bankruptcies, etc.