What happens if you foreclose on a second home?

What happens if you foreclose on a second home?

Following a first-mortgage foreclosure, all junior liens (including a second mortgage and any junior judgment liens) are extinguished and the liens are removed from the property title. But the second-mortgage debt and creditor’s judgment remain, even though they’re no longer attached to the foreclosed property.

What is the true relationship between a Judgement lien and a mortgage?

Liens generally follow the “first in time, first in right” rule, which says that whichever lien is recorded first in the land records has higher priority than later recorded liens. For example, a mortgage has priority over a judgment lien if the lender records it before the judgment creditor records its lien.

Can you write off foreclosure losses on your taxes?

Can I claim a loss on my tax return? No. Losses from the sale or foreclosure of personal property are not deductible.

Can a family member live in my second home?

Can I let a family live in my second home rent-free? Provided that you are the owner of the second home, you can do anything you like within the confines of the law. If you choose to allow a relative or close friend use the home rent free, then you may do so.

How soon after refinancing can I buy another primary residence?

How soon after refinancing can I buy another home? If you plan to buy a vacation home or an investment property, you can buy as soon as your refinance closes and you have the cash in hand. However, you cannot buy a separate primary residence using a cash-out refinance and then move into it right away.

What happens if you sell your house after refinancing?

Selling a house after refinancing means you’re less likely to recoup what you spend at closing. For example, if you pay $5,000 in closing costs, and refinancing reduces your mortgage payment by $250, you’ll need to live in the home for at least another 20 months to break even.