We bought a house in 2007, and lived in it for 3 years. In 2010 we bought another house to fit our family needs. We rented the first house and continued to make payments until about 8 months ago when we decided to short sell it. The rent would not cover the payments and our family size increased by two. However, recently the bank rejected our application. We may have to foreclose on the house because we cannot afford to keep it anymore.
I know in Oregon the bank cannot obtain a deficiency judgment on our current primary property. What I don't know is whether or not they can obtain one for the rental house. We did not purchase the first house with the intent of renting it.