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How can foreclosure on an investment property impact my other properties or assets?

Asked over 2 years ago - Chicago, IL

My husband and I have a home in Illinios, an investment property in Flordia and I coown a rental property in Florida with my parents. We are considering walking away from the investment property in Florida. If we do so, can the lender go after the rental property in Florida that I co-own with my parents (has a mortgage of about $100K on it with a different lender) and/or our primary residence in Illinois (has a mortgage of about $400K on it with a different lender)? Can they go after any other assets (investments, savings, etc.?)

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Attorney answers (2)

Ahmad Tayseer Sulaiman

Reputation Level 13

Answered over 2 years ago. Foreclosure Attorney in Oak Brook, IL.

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Please consider a Deed In Lieu of Foreclosure. Essentially you will be giving the property back to the bank in exchange for a full release. Please visit Sulaimanlaw.com for a full explanation. Failing that you would try a consent foreclosure, essentially the same thing but it is done through the court. Both procedures are outlined in the Illinois Mortgage Foreclosure Act. Please hire competent counsel to achieve this goal. Please check if this is a possibility in Florida, and if it is, and I suspect it is, you will have solved much of your concerns.

Deed In Lieu of Foreclosure

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Joseph Kurt Kaple

Reputation Level 10

Answered over 2 years ago. Lawsuit / Dispute Attorney in Miami, FL.

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Yes they can. The mortgage holder can foreclose, obtain a deficiency judgment, and seek to recover on that judgment. The recovery efforts might result in liens and/or forced sale of other properties. I would recommend that you try to list the Florida property for short sale, in the hope that the short sale would result in a complete release for you and your husband. Please contact me if you would like for me to assist you in getting the property listed for short sale.

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