If I buy a 2nd house in another state and let my house in IN foreclose, can the bank come after the new house I just bought?

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If I buy a 2nd house in another state and let my house in IN foreclose, can the bank come after the new house I just bought?

I own a house in IN that I can’t seem to sell or rent and I had to move to another state for work. I want to get rid of that house in IN and buy another in the state I’m living in now but I don’t know what the bank will do. I’m not upside down on the mortgage yet, I just don’t want the house anymore. Is a deed in lieu the way to go? Will that destroy my credit? If I buy a new house in a new state can the bank come after that house for any reason. What are my options? Please help!

Asked on June 10, 2009 under Real Estate Law, Indiana

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

This is a complicated issue for the space allotted here.  I have provided you a link that will more fully explain your options and possible consequences: 

http://www.nolopress.com/article.cfm/ObjectID/A80A6DCE-1F1E-49E3-8AB35679DB63ADF9/catID/7e846209-6969-42d1-8b1617c517d8e62e/213/317/ART/

Hope this helps.  Best of luck.


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