Can a second home be used to pay off a mortgage on a forclosed property?

[Michbarb]

The first home where the owner resides is going into forclosure soon due to mortgage nonpayment. The amont owed on this home far exceeds what it is now worth. However, there is a second home, which is owned and currently being rented out. Can this second house be used to pay on the forclosed property?

 

[army judge]

The first home where the owner resides is going into forclosure soon due to mortgage nonpayment. The amont owed on this home far exceeds what it is now worth. However, there is a second home, which is owned and currently being rented out. Can this second house be used to pay on the forclosed property?

Are you proposing the sale of the second home?
Is the second home owned without a mortgage?

If the second home is owned free of a mortgage, you could try to sell it.
Then you could take the proceeds of the sale to pay off the mortgage on the first home.
I'm not sure if you're asking that, however.
Because, if you hit the lottery tomorrow, you could also use part of those funds to payoff the debt on the first home, too.

Now, if you're asking whether the mortgage holder (for the debt on home number one) would let you trade the value of the second home against the amount owed on the first home, who knows? You coudl always ask the mortgage holder. But, wouldn't it be easier to sell the second home?

 

[Michbarb]

I am asking whether the mortgage company could sieze the 2nd home to apply it to the amount still owed on the first home. There is 90,000. owed on the first home. The other house is owned and valued at around 65,000.

 

[army judge]

I am asking whether the mortgage company could sieze the 2nd home to apply it to the amount still owed on the first home. There is 90,000. owed on the first home. The other house is owned and valued at around 65,000.

Well, the mortgage company can't just seize the second home.

They can, however, file suit against you to satisfy the judgment they could receive after foreclosure.

If you want to save the second home, you might be wise to speak with a Michigan attorney.

In Texas, there are several legal ways to thwart the seizure of certain assets.

You need legal advice.

You might also wish to discuss bankruptcy.

It won't save home number one, but could delay the foreclosure.

Bankruptcy might be able to save home number two.

 

[foreclosureus1]

Re::Can a second home be used to pay off a mortgage on a forclosed property?

ou made a good point about checking the market value. In an area where there is a lack of inventory that value, even on a foreclosed home, can run up quite rapidly.