Can you own two houses and let one go into foreclosure or deed in lieu while keeping the other?

Answer

Yes..You can give up one home and keep the other...Unless...Both homes are secured by the same loan..Give the lender a deed in lieu of foreclosure..You should also realize, that if the loan was the result of a refinance, you could be responsible for a difficiency balance if the home was not sold for the loan balance. That's another reason to give the lender a deed in lieu.

Adding: It is not uncmmon that someone failing to pay any one debt is also delinquent on others. And everyone will be trying to be repaid by using any means possible, including forcing the boworrer to sell assets. A mortgage essentially secures the debt to that property, so that lender has first dibs on recovering his loan by reieving the proceeds of forcing sale of that asset.

However, forclosing (or forcing the sale) takes time and money. Especially if you fight it. And if the lender doesn't recover enough to repay all the costs, interest fees, etc. (a deficiency) he may try and seize another asset you have too.

In a deed in lieu of foreclosure you basically say (or should) - I will cooperate and hand over the asset now, as payment in full for the debt. Since it would pay off the entire debt, there would be no basis for the lender to force sale of another asset.

First answer by ID3486020746. Last edit by IamLostRU. Contributor trust: 839 [recommend contributor]. Question popularity: 46 [recommend question]