I need to know what recourse my mortgage company has or will take against my rental property?

I have a rental property that hasn't been rented for over 6 months because of vacanacies and foreclosures in the neighborhood. Other than taking the house back and screwing up my credit I'm wondering what the bank will most likely due to me if I stop paying the mortagage...will they come after my assets?I need to know what recourse my mortgage company has or will take against my rental property?
Sure they will. You went after their money.





Investments have no protections. You might try filing for bankruptcy, but you need to sell all of your assets to do that as well.I need to know what recourse my mortgage company has or will take against my rental property?
I believe that your lender will come after your assets if you default on your mortgage payments, especially on an investment property.





You should probably check with a legal adviser so you can know what to expect, especially if your investment property is in another state from where you live. Different laws may apply, but which? The ones where the property is? Or, where you live?
Yes.





But only if the foreclosure sale isn't enough to cover the balance. What you may do to save your credit is re-check the market rate for rental...if you aren't renting it you are charging too much. Foreclosures have absolutely nothing to do with the rental market..in fact, when foreclosures are high, rental rates GO UP, b/c the displaced homeowners can't buy another house.
Of course they will and the IRS will tax you on the total bank loss.





This property is NOT!!!! protected against the bank coming after you.





YOU CAN';T JUST WALK AWAY. Talk with a lawyer.
The lender will come after you for what you put up as collateral for the loan you got on your property.





Look at your loan docs you signed at the closing for your mortgage it will list that collateral.





Now about coming after additional assets. This is called a deficiency judgment, the name alone indicate they have to go to court, hire additional attorneys to defend themselves. While they are in court they can not do anything with the property that is being contested.





Mostly what they do is write off any loss they have on their federal income tax.





So any additional assets you have will not be ok.





I don't know why others continue to say a lender will go after a person in foreclosure for a deficiency judgment. I have been in the real estate/mortgage field in some way or the other since 1979 and have heard of a deficiency judgment only once of a lender seeking one. The lender went after this person because the house was burnt to the ground.





If you look at the foreclosure procedure used by most lenders they do not even go to court for the foreclosure, even though most states allow two types of foreclosure procedures.





#1 Non-judicial foreclosure





#2 Judicial foreclosure





Most lenders use the non judicial foreclosure because they stay out of the court system, it is very fast, they can immediately dispose of the property if it does not sell at the foreclosure auction.





If they use the judicial foreclosure procedure they are at the mercy of the court calendar. They can come after you for a deficiency judgment using this procedure. Under this procedure you are also entitled to reclaim the property for up to a year in some states. Since you are entitled to redeem the property they must keep it for this redemption period.





Which procedure would most smart business people use? One that ties the property up? Or one where they can immediately dispose of a non performing asset?





I hope this has been of some use to you, good luck.





';FIGHT ON';