My wife owns a condo and bought it before we got married...If she forecloses on it can the lender now come after my $$$???

Submitted by Frank from CA - 07/12/2010 - 2:42pm

We now own a house of our own and rent the condo....but we have to make up $800 a month on the condo due to HOA's and lowered rent. It is becoming too much for us...and she owes more than it's worth. Time to walk away?

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Comments

Submitted by Michelle - 07/13/2010 - 9:28am

There are a few variables to consider. If the loan is a purchase money loan (she did not refi and take cash out) then the lender has no recourse. If she only has one loan and the lender forecloses on the property there is the "one action" rule and the foreclosure would be the "one action" so their would be not further action other than the foreclosure.
If she has a cash out second then you will want to do additional research. The lien on the property for the second would be wiped out in a foreclosure (if the first lien forecloses) but that would not stop the lender from trying collect.
We also always suggest talking to your tax advisor about potential tax implications. An experienced Realtor with foreclosure knowledge can help you find people in your area that can advise you on your specific situation. Do your research and make sure you are making an informed decision.

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