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My home is in foreclosure I have a second and third mortgage. How can I protect my assets, cars & personal property from collect

Statesville, NC |

The home is in MA I now rent and live in NC does this have any bearing?

Attorney Answers 1


I would speak with an attorney licensed in the state of MA immediately. I say this because the answer to your question rests with the laws of MA. If MA is a "trustee state" in that the foreclosure is through a trustee and not the judiciary, then as a general rule, the trustee cannot seek a deficiency against you. If the property is foreclosed in a judicial foreclosure, as a general rule the lender can seek a deficiency judgment against you.

If a deficiency judgment is granted in MA, then it has the full force and effect in NC as well. In other words, the judgment holder can seek your assets in NC.

Furthermore, if either the 2nd or 3rd mortgage is a home equity line of credit (HELOC) then you made a personal guarantee on the loan and the personal guarantee survives the foreclosure (although the security against the property is wiped out). As such, you can and probably will be liable for the deficiencies on either or both.

Although a HELOC is not a deed of trust, the lender can (and I've recently seen this happen) sue on the personal guarantee and get a judgment in court. If a judgment is granted on the personal guarantee then again it would have full force and effect in NC.

You might want to consider a bankruptcy in order to sever personal liability you have in these loans.

I hope that helps and good luck to you!

Disclaimer: Attorney's opinions are not intended as legal advice and is for an informational basis only. Inquirer should seek the counsel of a duly licensed attorney within that jurisdiction.

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