Can a bank seize my primary residence if I default on the loan to my rental property?

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Can a bank seize my primary residence if I default on the loan to my rental property?

I recently qualified for another mortgage on a home that will become my primary residence. My current home (current primary residence) will become a rental until/if ever I can sell it. It is upside down by about 40%. If I default on my 1st note, can the bank come after my primary residence if I’m in an equity position?

Asked on May 27, 2012 under Real Estate Law, Maryland

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you default on the home that is upside down and the bank forecloses on the property and obtains a deficiency judgement (the difference between the mortgage amount and the sale price) then they can file a line against the other property.  Good luck.


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