If I own an interest in 2 homes and was able to refinance with a VA loan on one home, could it be taken away if the second home went into foreclosure?

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If I own an interest in 2 homes and was able to refinance with a VA loan on one home, could it be taken away if the second home went into foreclosure?

I am a partial owner of 2 homes, one in one state and one in another. If I could use my VA loan to buy out my partner in one of the properties so that I would own it outright, could it be taken away if the other home goes into foreclosure? I can’t support both. I am stuck with 2 homes with acreage that I can’t sell.

Asked on May 7, 2012 under Real Estate Law, Oregon

Answers:

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

Answered 9 years ago | Contributor

So you would refinance, take out money and use the money to buy out the othe home.  Well if the home with the loan was foreclosed upon and then sold with a deficiency judgement then the lender/creditor can attach other assets.  So conceivably yes, they could attach the other home.  Maybe it would be best to have someone help you negotiate the sale back to the bank of the other home - like a deed in lieu of foreclosure with a waiver of deficiency - and then just own the other home you can afford.  Get help.  Good luck.


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