Posts Tagged ‘rental’

Question:  I have a home (rental) with a first mortgage with one bank and a line of equity with another (Chase). We have our personal home with just a first mortgage but also with Chase. If we default on the equity line of credit tied to the rental home can it effect our current home since its with the same bank?

Answer:  – No, unless you used your personal property as additional collateral for getting the HELOC on the rental property. Because they are completely separate properties they can’t do anything to force the sale on you just because to don’t pay on the one. What they can do if you foreclose on the rental is file a judgment against you so you’d have to re-pay that, but usually that doesn’t happen and there are ways to prevent that from happening. Normally they will 1099 you for the amount they lost and you’d have to pay taxes on it.

Question:  I live in California but owned a rental in Arizona that was forclosed on. I had an equity line of credit on that home when it was forclosed on. I believe I owed about $90K on that equity line of credit. Can they now come after me for the money? Is my only recourse bankruptcy?