What will happend to my 2 houses that are paid for if i loss another house in a different state?

Question by BRENDAM: What will happend to my 2 houses that are paid for if i loss another house in a different state?
i have 2 houses that are paid for in TX(i don’t pay mortgage), and i have one in California, that i’m still paying. i can no longer afford to pay for the house in CA, so i was thinking about just stop paying for it until the bank picks it up. i was wondering if the bank can try to take away the two properties i have in Tx away from me?

Best answer:

Answer by Lila
I’m not really sure, my best advice to you is to ask a lawyer. It may also depend on the state’s laws, it probably varies from state to state. You could also put the house up for a short sale, its not really a short sale, but it lets you out of the deal. Ask a realtor to help you decide what is best for you. Also why do you have three houses, do you need all of the houses, if not sell one to save the one you cant pay for. Good luck, I hope that things get better for you soon.

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3 Comments/Reviews

  • zeuz says:

    Fortunately for you, California has the “one-action” rule for foreclosures. They can either foreclose by:

    – Trustee Sale
    – Judicial Action

    The most common is the Trustee Sale (like 99% of the time). If they foreclose by Trustee Sale, then the bank can only go after the property. If the property has insufficient value, then the bank loses. Period.

    In rare instances, the bank will foreclose by Judicial Action. That means the bank will have to foreclose through a lawsuit. If the bank chooses this method, then you have a 1-year right of redemption on the California house. If after the one year the house is sold for insufficient amounts, then the bank can obtain a judgment to collect against you personally.

    However, judicial foreclosures have strict rules. They can’t be done on houses that were acquired with a mortgage and were owner-occupied.

  • Steve D says:

    The answer is maybe, depending upon the mortgage you have in CA. California is partially a no recourse state, so if your mortgage falls under the legal guidelines for no recourse, once you default and they repossess, that is the end of it. If your mortgage falls outside the no recourse guidelines, then they can come after you and your other properties if they desire. Check with a good real estate lawyer to find out of your mortgage is considered a no recourse mortgage.

  • HEATHER says:

    I certainly hope so. You have the means to pay for the CA property you are choosing, willfully choosing NOT to. Yes, I know it is unfortunate that the economy tanked. I heard on the news this am that almost 1 in 5 people now own a house that is worth less than what they bought it for, myself included. Suck it up. Take out a mortgage on one of your paid off TX houses and get current on your CA house.

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