Question: MY PRIMARY HOME AND RESIDENCE IS IN CALIFORNIA BUT I OWN A APARTMENT COMPLEX IN ARIZONA. IF I LET IT GO TO FORECLOSURE, CAN THEY TRY TO TAKE MY HOME IN CALIFORNIA?
Answer: – No, unless you pledged it as collateral in order to qualify for your apartment complex.
Location is Pinetop, AZ My husband and I are in sales and we have had about 5 really bad months. We are now 3 months behind on two homes. Both have been put on the market FSBO, however no real bites. We are having open houses this weekend and hope for something good to happen. Both homes are priced way below appraisal and we are only asking what we owe on the larger home, which our family currently occupies, and 20k over what we owe on the second home which is used as a vacation rental. The first home and larger of the two, has a 1st and 2nd-appraises for $789 so we have about 80k equity. It is 4500 sqft. The 1st is for $549k and the second, with a different bank, is $158k. We are getting phone calls from both daily. We don’t have the income to pay for either 1st or 2nd. We are barely bringing in enough to pay the utilities. Then the second home, 2025 sqft which occasionally pays for its own mortgage, appraises for $408 and we have about $80k equity there as well. So unless sales pick up soon, we will not be able to make up the payments. These are both beautiful custom homes, but we live in a 2nd home or resort community and so things are a little slow as far as home sales go. We know our credit is messed up just by being late on the payments, however we don’t want it to get worse and would like to just start all over in a smarter way. Making sure we don’t buy a house that is too big for our pocket book. We just would really love some advice on our situation and what would be best for us to do. We must make a decision ASAP before foreclosure sets in. Is bankruptcy an option> We really are just lost as to what we should do or pursue. After reading other’s post, it looks like “a deed in lieu of foreclosure” isn’t an option since we owe the second as well.
Look forward to hearing from someone or reading advice very soon.